Tag: bangladesh

The government is providing subsidies and loans to diversify supply and boost imports of solar generators amid the Middle East conflict.

Global demand for apparel items has been cooling while local inflation is elevated; the government hopes cheap loans can spur investment, as ties warm with Malaysia and the IMF discusses a new credit programme.

There is concern from businesses and politicians that the trade deal is harmful to many sectors, takes away flexibility, and hands the US many benefits; the government is also trying to renegotiate a multi-billion dollar loan with the IMF, which insists many reforms are needed.

Bangladesh’s workplace safety, particularly in apparel factories, is again under question, after several major fire incidents in October, including at Dhaka airport, which have injured and killed many workers, and resulted in hundreds of millions of dollars of damage.

Agreements to import more goods from the US rather than from the Middle East or other Asian nations could heighten inflation risks; however Bangladesh's apparel sector should benefit.

Amid the uncertainty a US giant has suspended some apparel orders from the country, which is competing with the likes of Cambodia and Vietnam; meanwhile government export subsidies are set to decrease.

As the apparel and textile markets suffer from a gas shortage, which is used to dye fabric, the country is looking to ramp up domestic gas production.

Buyers are asking Bangladeshi exporters to share the additional tariff burden in a garment market which exports almost $9bn of products to the US annually; meanwhile the government wants to reduce barriers for US imports.

The merged businesses, to be called SILQ Group, help support SMEs through funding and their supply chain; the merger is backed by a $110m funding round from Valar Ventures and Saudi Arabia's Public Investment Fund.

Firms in the garment and pharmaceutical sectors are navigating severe turbulence in their businesses. The new government is trying to shore up FX reserves, bank balance sheets, keep inflation under control, and deal with flooding that hit over five million people in August.

There have been significant difficulties for supply chains reliant on garment factories, accessing USD, banks and the FX rate; however, a new administration could help bring a turnaround.

Citi veteran, Moinul Huq, has been promoted to the role, from head of the bank’s local transaction banking business.