Newsletter At A Glance…
In the News This Month!
- Leather Industry Compliance: Export potential held back by gaps
- Bangladesh–EU Relations: Deepening ties ahead of graduation
- June RMG Update: Post-LDC competitiveness in focus
Feature Articles
- National Budget FY2026–27: Reform signals, revenue risks and the implementation test
- Energy Debate: Shift from crisis response to investment
Working Groups
- Tax, Trade & Customs Working Group: Pre-Budget proposals and post-Budget picture
- Logistics Working Group: First members’ meeting
Events
- EBO Worldwide Network Annual Meeting 2026: EuroCham Bangladesh Strengthens and Advances EU–Bangladesh Trade and FTA Priorities in Brussels
- The Competitive Edge: EuroCham Bangladesh Hosts Decarbonisation Seminar to Support SME Garment Factories with Practical Pathways to Renewable Energy Adoption
- Discussion on Energy Efficiency and Renewable Energy: EuroCham at GIZ event ‘NEXUS PRO’
- EuroCham at the Danish Constitution Day Reception: hosted by Ambassador of Denmark
- Post-Budget Analysis Sessions: EuroCham attends on Finance Bill and National Budget FY2026-27
- EuroCham at EU Delegation: Presents at Development Partners (DP) Skills Development Working Group meeting
- TextileGenesis Industry Forum 2026: EuroCham Bangladesh delivers opening remarks
- Investment, Trade & Decent Work Consultation: EuroCham attends high-level stakeholder meeting
Upcoming Events
- Corporate Futsal Tournament 2026: EuroCham as a Strategic Partner
Member Highlights
- Bangladesh Denim Expo: Frontline to Future, 20th edition
- Arla: Dano Wins Silver at Digital Marketing Award for pack refresh campaign
- DBL Group: Silicon River USA Roadshow 2026
- Recover™: EU Ambassadors visit circular textile plant
- CMA CGM: Clears 1,960kg plastic waste at Bangladesh National Zoo
- Control Union Bangladesh: Advances community well-being through CSR
- Rahman’s Chambers: Recent highlights and achievements
- Tampaco Group: Co-sponsors Dhaka Industrial Packaging Expo 2026
Trade & Business Statistics
- Key Economic Indicators: Bangladesh Bank
In The News This Month!
Bangladesh’s Leather Industry at a Crossroads as Compliance Failures Hold Back Export Potential
Untapped potential
Industry stakeholders and experts widely agree the sector is significantly underutilising its potential. Commerce Minister Khandakar Abdul Muktadir told Parliament the industry could generate over $10 billion in annual export earnings, compared with the roughly $1.10–1.15 billion it has earned annually over the past three years (The Business Standard). Separately, Dr Md Mizanur Rahman of the University of Dhaka’s Institute of Leather Engineering and Technology estimated the country could earn $10–12 billion from its existing raw material base alone, noting Bangladesh holds roughly 4% of the world’s rawhide and skin resources and produces 350–400 million square feet of hides and skins each year. He also estimated close to 30% of the country’s leather is wasted annually due to poor preservation and processing shortfalls (The Daily Star).Compliance and the Savar relocation
Much of the sector’s trouble is traced back to the 2017 relocation of tanneries from Hazaribagh to Savar’s Hemayetpur, a move billed at the time as a green transformation that promised modern waste treatment and cleaner production standards (The Business Standard). BFLLFEA Chairman Md Tipu Sultan said the environmental facilities promised at the time of relocation still haven’t been delivered, and that this shortfall has cost the industry international customers and hurt smaller linked businesses (The Business Standard). The Central Effluent Treatment Plant (CETP) in Savar was built at a cost of Tk565 crore and, according to one report, treats only around 14,000 cubic metres of wastewater daily against peak Eid-season demand of up to 35,000 cubic metres. (The Business Standard). The commerce minister separately told reporters actual treatment currently ranges between 14,000 and 18,000 cubic metres against a designed capacity of 25,000 cubic metres (The Financial Express). In Parliament, the minister outlined government plans to mechanise slaughterhouse and skinning operations, upgrade the CETP toward its full designed capacity, provide financial support for tanneries to build their own effluent treatment plants, and bring all factories in the Savar zone under full environmental compliance (The Business Standard).The Certification Bottleneck
Because of these environmental shortfalls, very few Bangladeshi tanneries hold Leather Working Group (LWG) certification — the internationally recognised standard required by major global brands — compared with hundreds of certified factories in Italy and India. As a result, exporters are largely limited to selling semi-processed “wet blue” leather to Chinese buyers at steep discounts, with the absence of LWG certification estimated to cost the country around $500 million in lost export earnings annually (The Business Standard). Tannery owner Md Salauddin Ahmed said the sector’s dependence on Chinese buyers, who currently dictate prices, has left it exposed on margins. He noted that with most chemicals imported and the dollar strengthening, even affordable raw hides are yielding little profit. (The Daily Star).Regulatory and Policy Constraints
Industry figures also point to structural business-environment issues, including complex licensing procedures, tax-related friction, and weak incentive structures, drawing comparisons to Vietnam’s more coordinated industrial policy framework (Dhaka Tribune). Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD) has repeatedly flagged the added risk posed by the EU’s Carbon Border Adjustment Mechanism (CBAM), warning that Bangladesh needs to prepare for tighter environmental standards or risk losing export competitiveness (The Business Standard).Government response
The Commerce Ministry has said a long-term development plan for the leather sector — covering hide preservation, processing, and export capacity — is expected to be unveiled by July 2026 (The Financial Express). Bangladesh Krishi Bank Chairman Md Nurul Amin called for stronger state intervention in hide collection, preservation, and industrial management, and proposed transferring CETP management from BSCIC to BIDA or BEPZA under a competent operator. He further urged easing restrictions on the sale of Hazaribagh tannery land and ensuring effective use of the Tk 100,000 crore Bangladesh Bank stimulus package, alongside a dedicated financing scheme for the sector (Dhaka Tribune).Outlook
Concluding the PPRC dialogue, Dr Hossain Zillur Rahman cautioned against fragmented, one-dimensional policymaking, noting that although the tannery relocation was intended to protect the Buriganga River, pollution has continued to affect both the Buriganga and the Dhaleshwari. He stressed that future policy measures must be based on planning that simultaneously considers environmental, economic, institutional, and industry-related implications (The Financial Express). Experts broadly agree that without such coordinated reform, Bangladesh risks permanently losing ground in a global leather and footwear market valued at over $420 billion (The Business Standard).Najifa Arshad
Operations | EuroCham Bangladesh
Bangladesh Deepens Ties with EU, Germany and Netherlands Ahead of LDC Graduation
EU Signals Stronger Economic Partnership
May 2026 marked a significant month in the evolving trade relationship between Bangladesh and the European Union, with discussions surrounding a potential Free Trade Agreement (FTA) gaining unprecedented visibility among policymakers, industry leaders and the diplomatic community. As Bangladesh approaches its graduation from Least Developed Country (LDC) status, the need to secure a durable and predictable framework for market access to its largest export destination has become increasingly urgent.
At the Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG) 2026, EuroCham Bangladesh Chairperson Nuria Lopez reiterated the importance of launching negotiations for an FTA with the European Union, describing it as a national priority. She emphasised that an FTA would provide Bangladesh with a permanent and predictable framework for market access beyond existing preferential arrangements, helping safeguard the competitiveness of export-oriented industries, particularly the ready-made garments (RMG) sector. Lopez also noted that evolving European sustainability regulations, including the Corporate Sustainability Due Diligence framework, will reshape global supply chains and require manufacturers to strengthen governance, digital traceability and sustainability practices. She stressed that successful implementation will require shared responsibility among buyers, producers and governments, particularly to support SMEs. (The Business Standard, 2 May 2026)
Germany Backs Bangladesh’s EU FTA Bid, Urges Diversification Beyond Textiles
Bangladesh and Germany reiterated their commitment to deepening trade, investment and multilateral cooperation. Director General for Asia and the Pacific at the German Federal Foreign Office, Frank Hartmann, met State Minister for Foreign Affairs Shama Obaed Islam on 9 June 2026 and stressed the need to broaden bilateral trade relations, with both sides emphasising the importance of concluding a Bangladesh-EU FTA (The Business Standard). Following the visit, which ran from 9 to 11 June 2026, Hartmann said Bangladesh’s successful democratic transition had made Germany and Europe eager to engage more with the country. During the same visit, the delegation — including Hartmann, Steffen Koch (Head of the South Asia Division, German Federal Foreign Office), and German Ambassador to Bangladesh Dr. Rüdiger Lotz — also met Commerce Minister Khandakar Abdul Muktadir, who outlined government initiatives to facilitate business and promote leather, jute and light engineering exports. Hartmann stressed the importance of economic reforms and export diversification beyond textiles ahead of Bangladesh’s LDC graduation (The Business Standard).
Germany-Bangladesh renewable energy cooperation
Bangladesh and Germany signed a Memorandum of Understanding in Dhaka (reported 12 June 2026) for a €5 million grant-backed project to modernise technical and vocational education (TVET) in the renewable energy sector. Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, signed for Bangladesh; Mark Gombert, Country Director of the GIZ Office Dhaka, signed for Germany. The project — TVET4RE — will run from 1 July 2025 to 30 June 2028, implemented by the Directorate of Technical Education and the Bangladesh Technical Education Board under TMED. Germany has been a development partner of Bangladesh since 1972, with around €4 billion committed to date and 19 ongoing projects backed by €110.16 million in GIZ grants (The Business Standard).
Netherlands: Talks Cover LDC Graduation and Proposed EU FTA
Bangladesh and the Netherlands similarly reaffirmed their commitment to strengthening bilateral relations through sustained high-level engagement. On 9 June 2026, Ambassador of the Netherlands to Bangladesh Joris van Bommel paid a courtesy call on State Minister for Foreign Affairs Shama Obaed Islam, with Dominique Kuhling, Director for Asia and Oceania at the Dutch Ministry of Foreign Affairs, also attending the meeting. Discussions covered LDC graduation, the proposed Bangladesh-EU FTA, migration cooperation, human capital development and industrial sustainability. The state minister appreciated the Netherlands’ longstanding support for Bangladesh’s development journey, particularly in trade and investment, industrial sustainability, agriculture and water management (The Business Standard).
EU-Bangladesh migration and mobility talks
Henrik Nielsen, visiting director for International Affairs, Returns and Visa at the European Commission, met State Minister for Foreign Affairs Shama Obaed Islam in Dhaka on 10 June 2026 to discuss migration cooperation — including new legal pathways for Bangladeshi skilled workers, the EU’s forthcoming Asylum and Return Border Procedure, and irregular migration. The state minister reiterated Bangladesh’s zero-tolerance policy on human trafficking and thanked the EU for its support on Rohingya repatriation. The talks also touched on the Bangladesh-EU Free Trade Agreement and Bangladesh’s LDC graduation (The Business Standard).
Najifa Arshad
Operations | EuroCham Bangladesh
June Update: RMG Export Pressures Bring Post-LDC Competitiveness Into Focus
Rising Post-LDC Trade Uncertainty and Early Warning Signs
Bangladesh’s RMG sector entered June 2026 under growing pressure, as export weakness, shifting sourcing patterns, and post-LDC market-access concerns increasingly converged. The month’s developments showed that the post-LDC challenge is no longer only a future tariff issue; it is already being reflected in buyer caution, competitiveness concerns, production costs, and policy discussions around trade agreements. In early June, ESCAP warned that Bangladesh faces tariff risks after LDC graduation unless new trade arrangements are secured, noting that the EU’s Everything But Arms (EBA) scheme has long supported export growth, especially in ready-made garments (The Daily Star, 2026).Sharp Decline in EU Market Performance
The most visible concern was the weakening of Bangladesh’s position in the EU apparel market. Eurostat data reported in mid-June showed that Bangladesh’s RMG exports to the EU fell by 19.4% year-on-year during January-April 2026, from €7.55 billion to €6.09 billion, while Bangladesh’s share of EU apparel imports dropped from 24.4% to 21.9%. This was described as the steepest decline among major apparel suppliers to the EU, with weakening demand and intensifying competition reshaping sourcing patterns across the bloc (The Financial Express, 2026).Industry Alarm: BGMEA Flags Structural and Operational Pressures
Industry concerns became more pronounced after BGMEA convened an emergency board meeting to review the export slump. BGMEA officials linked the decline to a combination of global demand weakness, tariff uncertainty, geopolitical tensions, longer lead times, high bank interest rates, poor port operations, energy-related constraints, and LDC graduation-related concerns. During July-May of FY2025-26, garment exports stood at $35.31 billion, down 3.41% from the same period in the previous fiscal year, while buyers and industry representatives also pointed to longer shipment times to Europe as a competitiveness issue for Bangladeshi suppliers (The Daily Star, 2026).Regional Competition Intensifies: India’s Trade Advantage
The regional competitive context also became sharper in June. BGMEA identified India’s trade-deal momentum, particularly with the EU and UK, as one factor affecting sourcing decisions, while noting that India’s integrated supply chain and cost competitiveness are increasing pressure on Bangladesh. This is significant for Bangladesh because post-LDC competitiveness will depend not only on factory-level production capacity, but also on whether the country can secure predictable market access through FTAs, EPAs, or other trade arrangements (The Financial Express, 2026).Budget FY2026–27: Policy Response to RMG Competitiveness
The FY2026–27 budget attempted to respond to some of these competitiveness concerns. Reporting by The Financial Express noted that the budget emphasized safeguarding RMG and textile competitiveness through investment promotion, trade facilitation, industrialisation, economic zone expansion, and export diversification ahead of LDC graduation. BGMEA welcomed parts of the budget as business-friendly and reform-oriented, including policy stability, tax-system digitalisation, renewable-energy incentives, bond and VAT modernisation, and support for SMEs and women entrepreneurs. However, the association also called for additional measures, including reducing export source tax, waiving tax deduction at source on cash incentives, easing subcontract-related source tax, protecting the 12% corporate tax rate and 10% green-factory rate, and withdrawing additional duties on inputs such as polyester staple fibre, PVC resin and PET resin (The Financial Express, 2026; The Business Standard, 2026).Backward Linkages and Value Addition Debate
Backward linkage and value addition also emerged as important post-LDC concerns. The Bangladesh Textile Mills Association urged the government to retain the 30% value-addition requirement for the RMG sector, arguing that withdrawing it could increase misuse of bond facilities and weaken local textile industries. From the industry’s perspective, retaining backward-linkage strength is closely tied to sustaining export capacity during the post-LDC transition (The Financial Express, 2026).Outlook: From Export Slowdown to Structural Transition Challenge
Overall, June 2026 showed that Bangladesh’s RMG sector is facing a layered competitiveness challenge. The immediate issue is declining exports and weaker EU market performance; the medium-term issue is maintaining buyer confidence amid energy, finance, logistics, and lead-time constraints; and the longer-term issue is preparing for a trade environment where LDC-linked preferences will gradually lose importance. For the sector, the policy priority is therefore not only to recover export momentum, but also to use the transition period to strengthen market-access diplomacy, energy reliability, port efficiency, input-cost competitiveness, backward linkages, and product diversification.Sirajam Munira Binte Hafiz
Operations | EuroCham Bangladesh
Feature Article
National Budget FY2026-27: Reform Signals, Revenue Risks, and the Implementation Test
A Budget of Reform Signals Under Pressure
Bangladesh’s FY2026-27 national budget was presented in June at a difficult economic moment, with the country facing persistent inflationary pressure, weak private investment, banking-sector stress, energy uncertainty, and continuing challenges in revenue mobilization. The proposed budget totals Tk 9.38 lakh crore, with total revenue income projected at Tk 6.95 lakh crore and NBR tax collection targeted at Tk 6.04 lakh crore. The budget deficit is projected at Tk 2.43 lakh crore, equivalent to 3.6 percent of GDP (NBR Budget Speech, 2026). The central message of the budget is reform-oriented and broadly business-facing: stabilize the economy, support investment, simplify administration, expand social National Budget FY2026-27: Reform Signals, Revenue Risks, and the Implementation Test protection, and strengthen the foundations for growth. Yet the main question is whether these signals can translate into implementation. Across business reactions, media analysis, and think-tank commentary, the broad assessment has been cautiously positive, but concerned about execution, revenue realism, and institutional capacity.
The Government’s Stated Direction: Ten Priorities, Priority Sectors and a Multi-Year Recovery Agenda
The Macro Challenge: Ambitious Targets Versus Weak Fundamentals
The budget’s macroeconomic assumptions have attracted the most scrutiny. The government has targeted 6.5 percent GDP growth and 7.5 percent inflation in FY2026-27, while setting a Tk 6.95 lakh crore total revenue target and a Tk 6.04 lakh crore NBR revenue target. These targets sit alongside a deficit of 3.6 percent of GDP, to be financed through both domestic and external sources, including Tk 1.12 lakh crore from the banking system (NBR Budget Speech, 2026). Several analysts have described these projections as ambitious. A Daily Star economic analysis noted concerns over the growth and inflation assumptions, banking-sector vulnerabilities, non-performing loans, weak capital adequacy, low tax-to-GDP performance, and the feasibility of a sharp rise in revenue collection within one year (The Daily Star, 2026). CPD similarly argued that the 6.5 percent growth target and 7.5 percent inflation target would be difficult to achieve without stronger private investment, higher industrial activity, improved export performance, better energy supply, and greater financial-sector stability. CPD also warned that heavy domestic bank borrowing could crowd out private-sector credit at a time when businesses already face constrained financing conditions (The Business Standard, 2026) External assessments also raised questions about revenue execution. Fitch Ratings warned that the FY2026-27 budget’s revenue targets face execution risks, citing Bangladesh’s weak record on tax mobilisation and reform implementation. Fitch noted that the budget aims to raise the revenue-to-GDP ratio to 10.2 percent from around 8 percent in FY2026, making revenue collection a central test of budget credibility (The Daily Star, 2026).Business Facilitation: A Positive Shift in Tone
Despite macroeconomic concerns, one of the most widely welcomed features of the budget debate has been the shift toward business facilitation. Ahead of the budget, NBR sources indicated that reforms under consideration included quarterly VAT return filing instead of monthly submissions, fully automated online VAT registration, paperless submission for companies using approved ERP systems, faster customs clearance through broader laboratory testing options, relaxed Authorised Economic Operator rules, and simplified input-output coefficient requirements (The Business Standard, 2026). These reforms are technical, but important. For businesses, predictability and administrative simplicity often matter as much as headline tax rates. Reducing repeated physical visits to VAT offices, easing customs bottlenecks, expanding paperless systems, and improving trusted-trader access could lower compliance costs and help reduce uncertainty in trade and investment decisions. Deregulation is one of the most significant elements of the budget’s business-facilitation agenda. The proposed measures include completing company registration within 48 hours, issuing licences through a mandatory online single-window system within seven days, processing investor visas within 10 days, and issuing work permits for foreign professionals within seven days. The reform package also introduces a “deemed approval” mechanism, under which applications may move forward if relevant authorities do not provide comments, objections, or clearance within the stipulated time. If implemented effectively, these measures could reduce approval delays, lower compliance costs, and improve predictability for both domestic and foreign investors (The Daily Star, 2026; The Business Standard, 2026). The recovery roadmap also noted proposals for fully digitised tax and VAT returns, and a single digital platform integrating customs, licensing, and regulatory approvals (The Business Standard, 2026). The reform agenda also extends to customs, VAT, capital-market and investment-related procedures. Reported measures include automated tax and VAT audit selection, online issuance of tax residency certificates, mandatory e-VAT filing, instant BIN issuance, gradual expansion of bonded warehouse facilities beyond the ready-made garment sector, and simplified procedures for customs testing and documentation. These steps indicate that the government is seeking to move from one-off facilitation measures toward a more integrated digital governance framework for business services (The Daily Star, 2026; The Business Standard, 2026).Investment and FDI: Incentives Alone Are Not Enough
Investment revival is one of the budget’s central promises. The government announced a Tk 60,000 crore stimulus package through the Bangladesh Bank to support recovery, with allocations for reopening closed factories, agriculture and rural activities, Cottage, Micro, Small, and Medium Enterprises (CMSMEs), export diversification, and regional development. The package comes at a time when private-sector credit growth has reportedly fallen to 4.7 percent, reflecting weak investment demand, energy shortages, and foreign-exchange constraints (The Business Standard, 2026). The sectoral emphasis of the budget shows that the government is trying to broaden the investment base beyond traditional sectors. Reported tax and duty concessions and policy support focus on startups, ICT, semiconductors, electric vehicles, medical devices, agriculture, creative industries, renewable energy and export diversification. This sectoral approach is significant because Bangladesh’s long-term competitiveness, especially in the post-LDC context, will depend on whether the economy can attract investment into higher-value, technology-oriented, energy-efficient and export-diversified activities (The Asia Group, 2026; The Daily Star, 2026). However, incentives alone will not be enough to restore investment momentum. Business leaders have repeatedly stressed that energy reliability, predictable tax policy, banking-sector stability, logistics efficiency, and confidence in implementation are essential for attracting both domestic investment and foreign direct investment. At a seminar on the Finance Bill 2026, FICCI President Rupali Chowdhury welcomed the budget’s positive signal, but cautioned that FDI will not come simply because of cheap labour. Dr M Masrur Reaz, Chairman of Policy Exchange Bangladesh, similarly observed that the budget sends a positive signal to businesses and taxpayers, while warning that inflation remains a major challenge (The Business Standard 2026). This reflects the main tension in the investment agenda. The budget introduces useful measures, but investors will judge the environment by delivery: whether approvals are actually faster, whether tax administration becomes more predictable, whether energy shortages are addressed, and whether financial-sector reforms restore confidence.Green Transition and Energy Security: One of the Clearest Policy Signals
Energy security and the green transition emerged as one of the clearest policy signals in the FY2026-27 budget. Before the budget, energy experts and civil-society organisations had urged the government to prioritise renewable energy, reduce taxes and duties on solar equipment, expand green financing and net metering, modernise the grid, promote solar irrigation and community-based energy systems, and reform rural power distribution structures (The Business Standard, 2026). The proposed budget responded to parts of this agenda. It allocated Tk 17,345 crore for the power and energy sector, including Tk 14,996 crore for the Power Division and Tk 2,349 crore for the Energy and Mineral Resources Division. It also proposed a wide incentive package for solar energy, including tax exemptions on solar power generation projects until 2035, a 5 percent tax rebate on solar electricity bills, and duty exemptions on major solar equipment imports until 30 June 2031 (The Business Standard, 2026). At the same time, the budget places renewed emphasis on domestic energy exploration. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) is expected to undertake geological surveys, seismic surveys, exploration wells, and workover operations over the next three years. This suggests a dual approach: reducing long-term import dependence through domestic exploration while lowering future generation costs through renewable energy expansion (The Business Standard, 2026). However, green-transition commentators have noted that the renewable-energy measures still require broader implementation support. A Daily Star analysis argued that the incentives may not extend equally across the solar ecosystem, including importers, distributors, EPC firms, self-financed users, solar irrigation, solar street lighting, and battery energy storage. CPD also warned that despite renewable incentives, the energy allocation still shows a strong fossil-fuel bias, with only a small share of power-generation allocation directed toward renewable energy (The Daily Star, 2026; The Business Standard, 2026)Stakeholder Reactions: Cautious Welcome
Stakeholder reactions to the budget have generally followed a consistent pattern: support for the reform direction, combined with concern over implementation. Development and energy-transition groups welcomed the fiscal incentives for renewable energy, battery storage, and electric mobility. Business bodies such as BCI, BUILD, and MCCI described the budget as reform-oriented or business-friendly, while stressing that revenue mobilisation, institutional capacity, energy supply, and execution timelines remain major risks (The Business Standard, 2026). MCCI’s post-budget dialogue also reflected this cautious tone, bringing together policymakers, economists, business leaders, and private-sector representatives to discuss the FY2026-27 budget, its implications, and the implementation challenges ahead (MCCI, 2026). Sector-specific reactions were similarly mixed. BGMEA welcomed the budget as broadly business-friendly and reform-oriented, citing policy stability, tax-system digitalisation, business-startup simplification, renewable-energy incentives, and bond and VAT modernisation. However, it also called for further policy changes for the garment sector, including tax stability, reduced source tax, simplified VAT procedures for small and medium factories, and withdrawal of proposed additional import duties on key inputs for man-made fibre-based exports (The Business Standard, 2026). These reactions suggest that the budget has improved the policy conversation, but has not removed the uncertainty facing businesses. Stakeholders appear to recognise the reform signal; the remaining concern is whether the government can deliver the reforms quickly, consistently, and credibly enough to influence investment decisions.Conclusion: From Budget Speech to Delivery Test
The FY2026-27 national budget is significant not only because of its size, but because of the policy direction it signals. It places emphasis on deregulation, business facilitation, green energy, social protection, financial-sector stability, and institutional accountability. These are relevant priorities for an economy facing inflation, revenue constraints, weak investment, energy insecurity, and post-LDC competitiveness pressures. The budget also attempts to frame recovery as a longer-term process rather than a single-year intervention. Its multi-year recovery structure, priority sectors and deregulation agenda together suggest an effort to move from short-term stabilisation toward a broader reform pathway. The real test will be whether the first year of recovery creates enough confidence for the later stages of restoration and reconstruction to become credible. However, the budget’s success will depend less on announced allocations and more on implementation. Revenue mobilisation must improve without creating excessive pressure on compliant taxpayers. NBR modernisation must move from policy language to practical efficiency. Energy incentives must translate into reliable supply and bankable renewable-energy projects. Business facilitation must produce measurable reductions in time, cost, and uncertainty. For businesses and investors, the most important test will be whether the budget can create a more predictable operating environment. If implemented effectively, the FY2026-27 budget could strengthen confidence and support recovery. If execution falters, it risks becoming another ambitious fiscal plan constrained by weak institutions, revenue shortfalls, and delayed reforms.Sirajam Munira Binte Hafiz
Operations | EuroCham Bangladesh
Bangladesh’s Energy Debate Moves from Crisis Response to Investment and Implementation
In June 2026, Bangladesh’s energy debate moved into a new phase. After the immediate disruptions of March and April and the competitiveness concerns highlighted in May, the discussion in June focused more clearly on investment mobilisation, renewable energy targets, solar sector incentives, regional energy cooperation, and the practical challenges of implementation.
The month brought some positive signals. The government sought foreign investment in energy infrastructure, reaffirmed renewable-energy targets, and introduced fiscal measures that could make rooftop solar more commercially attractive. At the same time, global oil and LNG markets showed signs of relief as tensions around the Strait of Hormuz eased. However, June also showed that Bangladesh’s energy transition will depend not only on policy announcements, but also on quality control, grid readiness, balanced incentives, and credible implementation.
Energy Security Moves into the Investment Agenda
A key development in June was Bangladesh’s effort to position energy security as an investment priority. At the Baku Energy Forum 2026 in Azerbaijan, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood called for foreign investment in Bangladesh’s onshore and offshore exploration, LNG infrastructure, a land-based LNG terminal, a second oil refinery, and renewable-energy expansion. He noted that Bangladesh requires substantial investment in energy infrastructure to support industrial growth, trade competitiveness, and economic prosperity (The Business Standard, 2026).
This marked an important continuation of the energy-security discussion from previous months. The government’s message was not limited to fuel supply; it connected energy infrastructure directly with industrial growth and trade competitiveness. The minister also highlighted the launch of offshore bidding rounds, with an extended timeline until November 2026, and stated that fiscal and commercial terms had been updated to make the investment environment more attractive. At the same time, Bangladesh signalled that hydrocarbons would continue to play a role in ensuring reliable and affordable energy supply. This reflects the country’s difficult balancing act: reducing vulnerability to imported fuel shocks while still maintaining sufficient conventional energy supply for industry, power generation, and economic activity.
Renewable Targets Gain Clearer Policy Direction
Domestic renewable energy targets also became clearer in June. In Parliament, the energy minister stated that Bangladesh aims to meet 20 percent of total electricity demand from renewable sources by 2030 and 30 percent by 2040. The country’s installed renewable-energy generation capacity currently stands at 1,781.09 MW, while 26 renewable-energy power plants with a combined capacity of 1,172 MW are under construction. In addition, 15 renewable-energy projects with a total capacity of 665 MW are in the tendering stage and are expected to be connected to the national grid by 2029 (The Business Standard, 2026).
These figures are important because they show that renewable energy is moving from broad policy ambition into project pipelines and investment planning. The government has also set a long-term goal of achieving 10,000 MW of renewable-energy generation capacity. Under the Policy for Enhancing Private Sector Participation in Renewable Energy-Based Power Generation, 2025, private investors will be allowed to establish renewable-energy power plants and sell electricity either through government distribution infrastructure or directly to large and bulk consumers.
For industrial users, this policy direction is significant. If implemented effectively, private renewable-energy procurement could help factories access cleaner and more stable electricity beyond self-owned rooftop systems. However, the commercial success of these arrangements will depend on grid capacity, predictable wheeling or network charges, bankable contracts, and confidence among both investors and consumers.
Budget Measures Create Momentum for Rooftop Solar
The most visible energy-sector shift in June came through the FY2026-27 budget’s solar incentives. A June analysis in The Business Standard argued that the budget’s sweeping duty cuts on solar components could trigger a rooftop solar boom in Bangladesh. According to the report, import duties were withdrawn on solar panels, inverters, lithium batteries, DC cables, and mounting structures, cutting the effective duty burden from around 20 percent to zero. Battery storage duty also fell from 61.8 percent to zero, while commercial solar investment received a full income-tax holiday until 2035. Retail and industrial consumers installing solar are also set to receive a 5 percent rebate on electricity bills (The Business Standard, 2026).
The economics of rooftop solar may therefore change significantly. The same analysis noted that the cost of installing one MW of rooftop solar could fall from Tk 3.5-4 crore to around Tk 2.75-3 crore, while industry insiders and analysts projected up to 2,000 MW of new rooftop solar capacity within two years. The report also highlighted that rooftop solar can generate electricity at around Tk 3 per unit over a 20-year panel lifespan, compared with much higher industrial grid electricity costs.
For Bangladesh’s industrial sector, this could be a turning point. Rooftop solar had previously been discussed mainly in terms of ESG, compliance, and buyer expectations. By June, the policy and cost environment began to suggest a more practical business case: lower operating costs, reduced exposure to grid-price volatility, and potential foreign-exchange savings through lower fuel imports. The report estimated that every 500 MW of rooftop solar could save around USD 20 million in import costs, while 4,000 MW of industrial rooftop solar could reduce around Tk 5,000 crore annually in power subsidies.
Global Fuel Markets Offer Relief, but Not Certainty
June also brought some relief in global fuel-market conditions. Oil prices fell sharply in mid-June after the United States and Iran reportedly reached an initial deal to end the conflict and resume traffic through the Strait of Hormuz. This price movement is relevant because Bangladesh is a net importer of crude oil and refined petroleum products, meaning even short-term fluctuations in global benchmarks directly affect domestic power generation costs, fuel subsidies, and foreign exchange pressure. Brent crude futures fell by more than 4 percent to USD 83.75 per barrel, while West Texas Intermediate also declined by nearly 5 percent. The Strait of Hormuz is a critical chokepoint for around one-fifth of the world’s oil and LNG supplies, so any reopening is directly relevant for import-dependent countries such as Bangladesh (The Business Standard, 2026).
The LNG picture also began to improve, although uncertainty remained. QatarEnergy reportedly indicated that it could quickly restart LNG production at unaffected facilities and reach full output from those facilities within a month once shipping normalised. However, the report also noted that the main challenge was no longer only production, but shipping and logistics, as shippers awaited reassurance on safe passage through the Strait, including mine-clearance concerns (The Business Standard, 2026).
For Bangladesh, this reinforces a key lesson from the previous months: global price relief can reduce immediate pressure, but it does not remove structural vulnerability. If the country remains heavily dependent on imported fuel and LNG, geopolitical instability, shipping disruption, and price volatility will continue to affect power costs, subsidies, foreign exchange pressure, and industrial planning.
Regional Electricity Cooperation Opens a Small but Strategic Window
Another important June development was the start of seasonal electricity imports from Nepal. Bangladesh was set to receive 40 MW of electricity from Nepal via India from 15 June to November under a tripartite agreement signed between Bangladesh, Nepal, and India. While the volume is small compared with Bangladesh’s overall power demand, the arrangement is symbolically important because it marks a practical step toward regional power trade (The Business Standard, 2026).The long-term potential is more significant than the immediate volume. Nepal’s hydropower potential and Bangladesh’s growing energy needs create space for deeper cooperation, particularly if larger projects move forward. Negotiations are also underway on the 683 MW Sunkoshi III hydropower project on a joint-venture basis. For Bangladesh, regional hydropower imports could support energy diversification and reduce dependence on imported fossil fuels, provided transmission, pricing, political coordination, and cross-border regulatory issues are addressed.
Implementation Risks: Quality, Inclusion, and Grid Readiness
While June created momentum for renewable energy, it also raised important implementation questions. The solar-duty cuts are a major positive step, but analysts warned that zero duties could also open the market to substandard panels, counterfeit batteries, and poorly rated inverters unless quality-control systems are strengthened. The Business Standard report specifically noted the need for SREDA and BSTI to enforce standards so that consumer confidence in solar technology is not damaged at the early stage of expansion (The Business Standard, 2026).
A separate analysis in The Daily Star and SANEM both highlighted gaps in Bangladesh’s FY2026–27 renewable-energy push, noting that while duty cuts on solar components and support for clean energy are positive steps, benefits may not reach the wider solar ecosystem and key segments like irrigation, street lighting, and battery storage remain under-incentivised, with additional concerns over testing delays; SANEM further warned that continued fossil-fuel support and a low 2.53 percent allocation of Power Division spending to renewables reflect a mismatch between policy targets and actual budget priorities, potentially slowing the country’s long-term energy transition (The Daily Star, 2026; The Business Standard, 2026)
These concerns show that Bangladesh’s renewable transition cannot rely on duty cuts alone. The country will need quality standards, faster approval processes, grid readiness, storage planning, balanced incentives, and stronger institutional coordination to ensure that solar expansion is both rapid and reliable.
Conclusion
June 2026 marked a shift in Bangladesh’s energy discourse from crisis response toward policy execution. The month featured clearer renewable-energy targets, stronger investment signals, major fiscal incentives for solar energy, some easing in global oil and LNG markets, and a small but symbolic step in regional electricity trade with Nepal. Together, these developments indicate growing policy momentum and a more structured approach to energy transition.
However, the key challenge remains implementation. While the case for accelerating renewable energy is stronger—driven by industrial cost reduction, energy security, foreign-exchange savings, and competitiveness—success will depend on execution capacity. Bangladesh must ensure quality control, expand grid infrastructure, enable viable private-sector participation, and distribute incentives effectively. For industries, especially export-oriented sectors, energy policy is increasingly about cost stability and long-term investment confidence, and the next step is translating policy targets into reliable, bankable, and scalable outcomes.
Sirajam Munira Binte Hafiz
Operations | EuroCham Bangladesh
Working Group Advocacy
Tax, Trade & Customs Working Group: EuroCham’s Pre-Budget Proposals for the National Budget FY2026-27 and the Post-Budget Reform Picture
Introduction: From Member Inputs to the Post-Budget Assessment
EuroCham Bangladesh’s engagement on the National Budget FY2026–27 was based on a structured advocacy process led by the Tax, Trade & Customs Working Group. The process consolidated member inputs on recurring tax, VAT, customs, tariff, and administrative challenges affecting European businesses in Bangladesh to develop practical, evidence-based proposals for submission to the National Board of Revenue (NBR).
In total, EuroCham submitted 50 numbered proposals and a four-row HS-code and tariff table, resulting in 53 unique proposals across 54 source rows after consolidation. These covered income tax, VAT, customs procedures, trade facilitation, logistics costs, sustainability-linked taxation and administrative reforms, forming the basis for the post-budget technical comparison with the final Budget, Finance Bill and Finance Act (National Budget FY2026–27; Finance Act 2026).
Why the Budget Exercise Matters for NTB Reduction
The budget exercise was closely linked to wider concerns around non-tariff barriers (NTBs), regulatory predictability and the cost of doing business. Many of the proposals submitted by EuroCham were not simply requests for tax relief; they were connected to broader operational barriers affecting trade, investment, logistics, customs clearance, documentation, treaty implementation and administrative certainty.
The EU’s identified NTB concerns in Bangladesh cover issues related to investment, services, customs, government procurement, intellectual property rights, double taxation, profit repatriation and sector-specific barriers in agriculture, food, dairy and pharmaceuticals. The same document notes that as Bangladesh moves toward LDC graduation, greater transparency, competition and rules-based commercial practices will become increasingly important for sustaining EU-Bangladesh trade and investment relations.
From this perspective, the Budget’s response to EuroCham’s proposals should be understood as part of a wider business-environment reform agenda. Measures that reduce appeal deposits, simplify bond-licence procedures, improve VAT credit treatment, support recycling inputs, or provide renewable-energy tariff concessions can help reduce procedural friction. However, they do not, by themselves, resolve the broader NTB agenda, which will require sustained coordination across NBR, customs authorities, line ministries, and operational agencies.
Overall Findings: Selective but Meaningful Recognition
The overall picture suggests selective rather than broad recognition of EuroCham’s proposals. Five proposals were fully recognised, thirteen were partially recognised, ten were indirectly addressed, and twenty-five were not recognised. No proposal remained unable to determine. Full or partial recognition covered 18 proposals, or 34.0%, while 28 proposals, or 52.8%, showed at least an indirect connection to a Budget measure.
| Status | Proposal Count | Share (%) |
|---|---|---|
| Fully recognised | 5 | 9.4% |
| Partially recognised | 13 | 24.5% |
| Indirectly addressed | 10 | 18.9% |
| Not recognised | 25 | 47.2% |
| Total | 53 | 100.0% |
Figure 1. Recognition status of EuroCham’s 53 unique proposals.
This outcome indicates that the Budget was more responsive where proposals were targeted, specific and aligned with administrative reform, appeal access, VAT relief, logistics cost reduction or green-investment priorities. Broader requests involving general tax-rate reductions, removal of collection-at-source burdens, structural VAT documentation reform or stronger customs entitlements received comparatively less recognition.
Where the Budget Responded Most Clearly
The clearest areas of response were concentrated in VAT, administrative reform, logistics, selected customs facilitation, and green-energy tariff measures. The strongest direct matches were found where EuroCham had requested lower appeal barriers, specific VAT exemptions, or a discrete procedural reform.
The Budget’s response pattern suggests a preference for targeted relief and process improvements rather than broad tax-base changes. For example, reductions in appeal deposits were clearly recognised, whereas broader safeguards against arbitrary assessment, recovery during litigation, notice irregularities, and proportionality of penalties were not fully addressed. Similarly, transport VAT credit relief was accepted, but broader VAT architecture issues such as Mushak-4.3, contract-manufacturing documentation and universal no-VDS (VAT Deducted at Source) treatment remained unresolved.
Green-energy proposals also received meaningful but incomplete attention. Concessions for lithium-ion battery/BESS (Battery Energy Storage Systems) items, solar inverters and photovoltaic modules are positive for renewable-energy investment, but the practical impact will depend on final tariff classification, end-use conditions and eligibility rules for commercial models such as ESCO/OPEX.
Accepted Measures and Their Business Implications
Several measures stand out as particularly relevant for EuroCham members. They show practical potential to reduce cash lock-up, improve appeal access, lower logistics costs, support circular production and strengthen the investment case for renewable-energy solutions.
1. Lower VAT Appeal Deposits
EuroCham proposal: Reduce the deposit required for VAT appeals from 10% to a maximum of 5%.
Budget outcome: Reduced to 1% at the Appeal Commissionerate, 1% at the Tribunal and 2% at the High Court.
Why it matters: Reduces the cash burden of seeking appellate remedies and improves access to dispute resolution.
2. Lower Income-Tax Tribunal Appeal Deposit
EuroCham proposal: Reduce Tribunal appeal deposit from 10% to 5%.
Budget outcome: Reduced from 10% to 3%.
Why it matters: Lowers the cost of contesting disputed tax claims and improves access to tax dispute resolution.
Figure 2. Appeal-deposit requirements: proposal, previous rate and FY2026–27 outcome
3. Garment-Waste VAT Exemption
EuroCham proposal: Exempt sorted and unsorted garment waste or “jhut” at procurement/supply stage.
Budget outcome: Added sorted and unsorted garment waste or scraps under service code S037.00 to the VAT exemption table.
Why it matters: Supports recycling, circular production, domestic value addition and sustainable manufacturing.
4. Full Input VAT Credit for Goods Transport
EuroCham proposal: Remove the restriction preventing full VAT credit on goods transport services.
Budget outcome: Removed the 80% input VAT credit cap.
Why it matters: Can reduce cascading VAT and logistics-related compliance costs for businesses.
5. Easier Bond-Licence Ownership Process
EuroCham proposal: Ease physical-appearance requirements for non-resident nominee directors during ownership changes.
Budget outcome: Removed the requirement for both previous and new owners to appear physically.
Why it matters: Reduces administrative delay and procedural friction for foreign-linked businesses.
6. Green Technology: Battery Storage and Rooftop Solar
EuroCham proposal: Provide tariff relief for lithium-ion batteries, BESS, solar panels, inverters and related equipment.
Budget outcome: Partially reflected through concessions for lithium-ion battery/BESS items, solar inverters and photovoltaic modules.
Why it matters: Supports renewable-energy investment, subject to tariff classification and eligibility verification.
Remaining Gaps and Unresolved Structural Issues
Despite these positive developments, several important areas remain open for continued engagement. These should be viewed not as a lack of progress, but as the next set of issues requiring continued technical dialogue and implementation-focused follow-up.i. Upfront tax and working-capital pressure
Broad relief from import-stage AIT and advance VAT for manufacturing inputs was not recognised, meaning that working-capital pressure at the import stage remains a concern for manufacturers.ii. Sector-specific tariff and supplementary duty issues
The supplementary duty reduction for carbonated beverages and bottled water was not recognised.
The proposal on harmonising the duty structure for filled milk powder (FMP) is also a notable example. While the issue had been recognised during stakeholder engagement with NBR and was discussed in the context of improving affordability and reducing category distortions, the final Budget did not reflect the requested alignment of FMP with comparable milk powder categories. EuroCham had sought to reduce the total tax incidence on FMP under HS 1901.90.11 from 61.80% to 39.75%, in line with other milk powder categories. Subsequent reporting also noted that FMP remained subject to a higher tax burden in the FY2026-27 budget, raising concerns over affordability, level playing field and investment prospects in the dairy sector (The Financial Express, 2026).
iii. Treaty and investment-climate issues
Several income-tax and investment-climate concerns also remain unresolved. These include corporate bank-transfer conditions, cash-payment limits, deduction constraints, direct application of DTAA rates, publication of DTAA certificate checklists, and removal of certification requirements where a treaty already exists. The Budget’s move toward online certificate processes may improve delivery, but it does not fully address the structural treaty-application concerns raised by members.iv.VAT and customs process reforms
VAT documentation and customs facilitation remain important areas for follow-up. The proposals on harmonised VAT value definitions, repeal of Mushak-4.3, contract-manufacturing documentation and broader removal of VAT deduction at source for valid 15% VAT invoices were not fully recognised. Customs-related gaps remain around mandatory release during disputes, universal spares parity, effective duty drawback, fair IGM-liability allocation and a mandatory right to provisional release.From Recognition to Results: The Implementation Test
The practical value of the recognised measures will depend on implementation. Several accepted, partial and indirect matches depend on SRO wording, general orders, tariff classification, forms, portals, National Single Window processes, eVAT configuration, circulars or operating procedures. For this reason, relevant commencement dates, eligibility conditions and administrative processes should be verified before businesses rely on them operationally. A constructive next step would be to maintain an implementation tracker for each priority issue, following the measure from the Budget to the Finance Act, SRO, general order, form, portal, circular and operating procedure. Member feedback will also be important to confirm whether reforms work in practice and whether residual issues arise during implementation. This approach is aligned with EuroCham’s ongoing dialogue with NBR. During EuroCham’s follow-up engagement with the NBR Chairman, the possibility of forming a joint working group with foreign chambers after the budget period was discussed as a mechanism to address NTBs and related issues through more regular follow-up. Such a platform could help ensure that positive budget measures translate into practical business facilitation while also creating space to address unresolved structural barriers.How the Budget Measures Were Reviewed
The post-budget comparison examined whether the National Budget FY2026-27, the Finance Bill 2026-2027, the Finance Act 2026 and related legal references responded to EuroCham’s consolidated proposals. Each proposal was classified as fully recognised, partially recognised, indirectly addressed, not recognised or unable to determine, based on documentary evidence from official budget and legal sources. The legal baseline included the Income Tax Act 2023, Finance Ordinance 2025, Certain Laws Related to Finance (Amendment) Ordinance 2025 and Finance Act 2024. Supplementary technical sources, including SMAC Advisory’s Finance Bill 2026 analysis, PwC’s Finance Act 2026 key amendments, BRAC’s Budget Analysis FY2026-27 and CPD’s Budget Analysis FY2027, were used for legal, implementation and economic cross-checking. A positive classification required an identifiable documentary match. At the same time, partial and indirect recognition were used only where the final measure responded to the proposal in a clear but incomplete or adjacent way.Conclusion: Evidence-Based Advocacy and the Next Reform Cycle
The FY2026-27 Budget shows that evidence-based private-sector advocacy can contribute to specific reform outcomes, particularly where proposals are targeted, technically defined and aligned with broader government priorities. EuroCham’s clearest areas of recognition were linked to appeal access, VAT relief, logistics cost reduction, administrative simplification and renewable-energy investment. At the same time, the comparison also highlights that many structural issues remain relevant for future engagement. Upfront tax collection, VAT documentation, DTAA implementation, customs valuation, tariff classification, duty drawback, provisional release and wider NTB reduction will require sustained technical dialogue. For EuroCham, the next phase should focus on implementation monitoring, member verification and prioritisation of high-impact reforms. The objective will be to ensure that recognised measures deliver practical results, while future advocacy continues to support a more predictable, transparent and investment-friendly business environment for European companies operating in Bangladesh.Sources Used in Comparison
- National Budget Speech 2026-27
- EuroCham Budget Proposal Consolidated List
- Finance Bill 2026-2027
- Finance Act 2026
- Income Tax Act 2023
- Finance Ordinance 2025
- Certain Laws Related to Finance (Amendment) Ordinance 2025
- Finance Act 2024
- SMAC Advisory – Finance Bill 2026 Analysis
- PwC – Finance Act 2026 Key Amendments
- BRAC – Budget Analysis FY2026-27
- CPD – Budget Analysis FY2027
- The Financial Express – FMP duty update
Sirajam Munira Binte Hafiz
Operations | EuroCham Bangladesh
Logistics Working Group: First Members’ Meeting
EuroCham Bangladesh’s Logistics Working Group held its first members’ meeting on 18 June 2026 at Maersk Bangladesh Ltd., bringing together representatives from member companies across shipping, freight forwarding, express delivery, retail, manufacturing, legal, and logistics services. The meeting marked the formal launch of the Working Group’s member-level discussions and set the foundation for a coordinated advocacy agenda on logistics-related non-tariff barriers, cost pressures, and operational bottlenecks affecting businesses in Bangladesh.
Members agreed that EuroCham should serve as a neutral platform to consolidate logistics-related business concerns, prioritize a limited number of actionable advocacy issues, and engage relevant government stakeholders collectively. The discussion emphasized that many logistics challenges cut across multiple authorities and therefore require structured and official engagements across multiple government and operational agencies. The Working Group identified several priority areas for further review and advocacy, including regulatory and licensing frameworks, port and gateway efficiency, multimodal transport connectivity, customs and trade facilitation processes, air cargo operations, compliance and risk-related classifications, and overall logistics cost structures and associated charges.
A key theme of the meeting was the need to separate urgent budget or SRO-related concerns from broader policy and operational issues. Members also discussed the importance of sequencing advocacy priorities, identifying the appropriate government counterpart for each issue, and building evidence-based proposals supported by company-specific examples. The Working Group further noted that logistics reforms should be viewed not only as sectoral concerns, but also as critical enablers of trade competitiveness, export efficiency, investment facilitation, and supply-chain resilience. As next steps, EuroCham will circulate a categorized issue list for member review and compile relevant updates from previous EU and Ministry of Commerce discussions on non-tariff barriers. Members will provide company-specific examples, evidence, and comments to support prioritization.
Sirajam Munira Binte Hafiz
Operations | EuroCham Bangladesh
Events
EuroCham Bangladesh at the EBO Worldwide Network Annual Meeting 2026
EuroCham Bangladesh participated in the EBO Worldwide Network (EBOWN) Annual Meeting 2026, held in Brussels from 1–5 June, joining European Business Organisations from across the world for five days of high-level engagement on European competitiveness, trade, investment and economic cooperation.
Held under the theme “How Can EBOs Help Drive European Competitiveness?”, the Annual Meeting brought together 62 delegates representing European Business Organisations from 54 countries. The meeting provided a platform for European business communities operating outside the EU to engage directly with European institutions, exchange market intelligence and contribute practical business perspectives to the EU’s external economic agenda.
Representing EuroCham Bangladesh for the second time, Chairperson Ms. Nuria Lopez participated in the five-day programme alongside representatives of European chambers and business organisations from six global regions. EuroCham Bangladesh’s participation reflected its continued commitment to strengthening EU–Bangladesh trade and investment relations and ensuring that the perspectives of European businesses operating in Bangladesh are represented in policy discussions in Brussels.
Throughout the week, EBOWN members engaged with senior representatives of the European Commission, European Parliament, BusinessEurope and Eurochambres, including officials from DG GROW, DG TRADE, DG ENER and DG INTPA. Discussions covered European competitiveness and economic security, EU trade policy and market access, regulatory simplification, Global Gateway, critical raw materials and supply-chain resilience, energy security, industrial policy and the future of the EU’s Generalised Scheme of Preferences (GSP). Regional meetings also enabled EBOs to exchange market developments and identify opportunities for coordinated advocacy.
A major focus of the programme was the role of EBOs as a source of on-the-ground business intelligence for European policymakers. Sessions examined how European Business Organisations can help identify regulatory and market-access challenges, support European companies in third-country markets, facilitate investment and public-private dialogue, and contribute evidence-based perspectives to EU policymaking. The EBO Global Business Sentiment Report was also highlighted as an important tool for bringing business perspectives from international markets into European policy discussions.
Advancing Bangladesh–EU Trade Priorities
Alongside the official EBOWN programme, Chairperson Nuria Lopez held a series of strategic engagements with senior EU officials, with particular emphasis on the future of Bangladesh–EU trade relations and prospects for a Bangladesh–EU Free Trade Agreement (FTA).
A key engagement was with Iuliu Winkler MEP, Vice-Chair of the European Parliament’s Committee on International Trade (INTA). Discussions addressed the prospective Bangladesh–EU FTA, Bangladesh’s future trade relationship with the European Union following LDC graduation, and the importance of sustained engagement with the European Parliament as trade discussions progress.
Ms. Lopez also met with Aitor Montesa Lloreda, Deputy Head of Unit for South & South-East Asia, Australia and New Zealand at DG TRADE, to discuss Bangladesh–EU trade relations, prospects for a future FTA and continued cooperation between DG TRADE and EuroCham Bangladesh. Further engagements were held with Nati Lorenzo, Cabinet Expert in the Cabinet of European Commissioner Jozef Síkela, and Libuše Soukupová, Head of Sector for South Asia at DG INTPA. Discussions covered the FTA, Bangladesh’s post-LDC transition, broader economic cooperation and the proposed EU–Bangladesh Business Forum as a platform for closer public-private dialogue.
These engagements provided EuroCham Bangladesh with an important opportunity to bring Bangladesh-specific trade and investment priorities directly into discussions with European policymakers, while strengthening relationships with institutions that will play an important role in the future of EU–Bangladesh economic relations.
Participation in the EBOWN Annual Meeting also reinforced EuroCham Bangladesh’s position within the global network of European Business Organisations and its role as a bridge between European institutions and the European business community in Bangladesh. Building on the discussions in Brussels, EuroCham Bangladesh will continue to advocate for deeper EU–Bangladesh economic cooperation, stronger private-sector dialogue and a forward-looking trade relationship as Bangladesh approaches its next phase of economic development.
Nujhat Anjum Silva
Operations | EuroCham Bangladesh
EuroCham Bangladesh Hosts Seminar on Decarbonising SME Garment Factories
Supporting SME Manufacturers with Practical Pathways to Renewable Energy Adoption
On 30 June 2026, EuroCham Bangladesh, in collaboration with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), successfully organised the seminar “The Competitive Edge: Decarbonising Bangladesh’s SME Garment Factories” at the BGMEA Multipurpose Hall in Dhaka. Supported by BRAC Business School and Oxfam, with SOLshare and the Greener Garments Initiative (GGI) as Technical Partners, the seminar convened policymakers, development partners, financial institutions, technical experts, international brands, academia and SME garment manufacturers to explore practical solutions for accelerating rooftop solar adoption and strengthening the long-term competitiveness of Bangladesh’s ready-made garment (RMG) sector.
Against the backdrop of rising energy costs, Bangladesh’s scheduled LDC graduation in November 2026 and EU due-diligence requirements increasingly cascading down global supply chains, the seminar underscored a clear message: decarbonisation is no longer solely an environmental objective—it has become a strategic business imperative. Rather than focusing only on policy discussions, the programme was designed to provide SMEs with practical guidance on adopting rooftop solar through innovative business models, financing mechanisms and technical support. Participating factories were also invited to register for complimentary rooftop solar feasibility assessments and follow-up consultations, reinforcing EuroCham’s commitment to supporting implementation beyond the seminar itself.
Opening the seminar, Ms. Nuria Lopez, Chairperson of EuroCham Bangladesh, delivered the event’s central message: “Decarbonisation is no longer just about sustainability. It is about competitiveness.” She encouraged SMEs to view decarbonisation not as a compliance burden, but as a business opportunity—a pathway to reducing costs, improving profitability and remaining competitive in European markets, while reaffirming EuroCham’s role in connecting European businesses, government and industry partners to support Bangladesh’s green industrial transition. Recognising that SMEs often face challenges related to information, technical expertise and financing rather than willingness, she highlighted EuroCham’s commitment to supporting factories through practical initiatives, follow-up engagement and long-term collaboration. She also proposed exploring SME clusters and consortium models that would enable factories to jointly access finance, share technical expertise and negotiate more favourable commercial terms for rooftop solar projects.
Representing the Delegation of the European Union to Bangladesh, Mr. Edwin Koekkoek, Team Leader – Green Inclusive Development and Social Protection, highlighted that the green transition is increasingly linked to global competitiveness. He cautioned that European buyers are already comparing sourcing destinations on their decarbonisation performance and that factories without credible green credentials risk losing orders as sustainability and due-diligence expectations move further down global supply chains. He stressed that expanding renewable energy, improving energy efficiency and advancing industrial electrification will be essential to maintaining Bangladesh’s competitive position in European markets. He also highlighted the European Union’s continued support through investments, policy advisory programmes and initiatives promoting renewable energy and industrial decarbonisation. He concluded by emphasising that greening Bangladesh’s garment sector is not only important for sustainability, but also for strengthening its long-term competitiveness.
Speaking on behalf of BGMEA, Mr. Faisal Samad, Director, stressed the importance of translating discussions into concrete action. He advocated for tailored decarbonisation roadmaps based on SMEs’ capacities and called for stronger engagement from international buyers so that sustainability investments translate into enhanced market opportunities. He also proposed developing pilot clusters of SME factories that could jointly pursue decarbonisation while expanding access to new export markets. Emphasising the need to maintain momentum, he proposed that BGMEA convene interested manufacturers through its SME Committee within days of the seminar, identify a pilot group of factories and begin developing a practical decarbonisation roadmap with EuroCham. He reaffirmed BGMEA’s commitment to helping carry the initiative from discussion to implementation.
The technical sessions explored the evolving sustainability landscape and practical pathways for SME transformation. Mr. ABM Faqrul Alam, Head of Sustainability at Urmi Group, examined the implications of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), highlighting that sustainability expectations are increasingly cascading throughout global supply chains. He emphasised that CSDDD readiness does not necessarily have to begin with major capital investment: factories can start with zero-cost measures to strengthen governance, improve ESG data management and build due-diligence preparedness. He encouraged manufacturers to begin early and integrate decarbonisation into their broader business strategies to protect long-term access to European markets.
Delivering the keynote address, Dr. Sebastian Groh, Founder and CEO of SOLshare and Professor at BRAC Business School, presented decarbonisation as a source of competitive advantage rather than a compliance exercise. He introduced an SME cluster model in which neighbouring factories bundle their available rooftop capacity into a single bankable project. Through a bulk Power Purchase Agreement (PPA), participating SMEs could access commercial terms normally available to larger factories, while the service provider finances, builds and maintains the solar systems for up to 20 years—requiring no upfront investment from the factories.
Complementing this perspective, Mr. A.N.M. Ata Ullah of BRAC University’s Centre for Entrepreneurship Development (CED) shared insights from the Mapped in Bangladesh initiative. Drawing on a survey of 878 factories, he noted that only 3% of factory energy currently comes from renewable sources, illustrating both the scale of the challenge and the considerable room for expansion. He highlighted the need for stronger policy incentives, simplified net-metering procedures, improved access to green finance and cluster-based approaches to unlock rooftop solar potential among SMEs.
A live rooftop solar feasibility assessment conducted by Mr. Syed Ishtiaque Ahmed of SOLshare made the opportunity tangible. The assessment estimated that a participating factory’s 14,000-square-foot roof could accommodate approximately 410–420 kWp of solar capacity, potentially generating monthly savings of around BDT 80,000, avoiding approximately 340 tonnes of CO₂ emissions annually and producing some 550
International Renewable Energy Certificates (I-RECs)—with no upfront investment required from the factory.
Two interactive panel discussions addressed both the technical and financial dimensions of SME decarbonisation. The first panel, “From Rooftop to Reality – The Technical Path to SME Solar” was moderated by Ms. Aziza Sultana Mukti, Deputy CEO of SOLshare, and featured Dr. Ashraful Alam (SREDA), Mr. Kazi Ahsan Uddin (GIZ), Mr. Omar Chowdhury (Hydroxide Knitwear Ltd.), Ms. Tanzina Dilshad (Delegation of the European Union to Bangladesh), and Ms. Fatema Tuz Johoora (Oxfam). The discussion explored rooftop solar feasibility, net metering, regulatory frameworks, implementation challenges and cluster-based approaches to accelerate SME solar adoption.
The second panel, “Who Pays? Making SME Solar Bankable” was moderated by Ms. Arick Shama Proma, Executive Director of EuroCham Bangladesh, and brought together Dr. Muhammad Fouzul Kabir Khan (BRAC University), Mr. Tanvir Ebne Bashar (IDCOL), Mr. Dewan Muhammad Nurul Islam (BESTSELLER), and Ms. Sharmin Prodhan (Bangladesh Bank) to examine financing solutions for SME rooftop solar, including bundled Power Purchase Agreements (PPAs), green refinancing facilities, brand partnerships and risk-sharing mechanisms. Across both discussions, panellists emphasised that accelerating rooftop solar adoption will require stronger collaboration among industry, financial institutions, technology providers, development partners and government, alongside continued technical assistance and project preparation support.
Concluding the seminar, EuroCham Bangladesh reaffirmed its commitment to supporting implementation beyond the event. EuroCham will continue developing the SME cluster and consortium concept, organise practical workshops in different parts of the country and work towards a high-level forum bringing together government representatives, the EU Delegation, EU member-state embassies, international brands and development partners. Factories that have not yet participated were encouraged to register for a complimentary rooftop solar feasibility assessment as the first step towards joining a potential solar cluster.
By positioning decarbonisation as a driver of competitiveness rather than simply a compliance requirement, the seminar reinforced a shared vision of ensuring that Bangladesh’s SME garment manufacturers remain resilient, sustainable and globally competitive in an increasingly low-carbon economy. As Ms. Lopez emphasised in closing, EuroCham’s objective is not to build a programme for SMEs, but to build it with them.
FREE ROOFTOP SOLAR FEASIBILITY ASSESSMENT SOLshare and the Greener Garments Initiative offer a free feasibility assessment and follow-up consultation — open to any factory, regardless of sector or size. Registering is the first step towards joining a solar cluster.
https://forms.gle/DgT4GSHJAs6fheby5Nujhat Anjum Silva
Operations | EuroCham Bangladesh
EuroCham Joins GIZ event to discuss Energy Efficiency and Renewable Energy in the Textile Sector
EuroCham Bangladesh Executive Director Arick Shama Proma joined as a panelist at Nexus in Action for Competitiveness: Sustainability Business Cases on Water, Chemicals, Energy, and Waste (NEXUS PRO), a day-long event organised by GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) GmbH under its Skills for Self-Monitoring and Compliance with Clean and Fair Production in the Textile Industry (SCAIP) project, held on 4 June 2026 at Le Méridien Hotel, Dhaka.
The event, implemented on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), brought together around 225 participants from government, industry, academia, trade unions, development partners, embassies, the EU, fashion brands, chemical manufacturers, and service providers, with 33 speakers, moderators, and panellists across 10 sessions covering project achievements, business cases, feasibility studies, and cost-benefit analyses. The event aimed to explore how a water-chemical-energy-waste nexus approach to resource efficiency can strengthen business competitiveness, enhance environmental performance, and support the long-term sustainability of Bangladesh’s textile and apparel sector. Key insights centred on positioning water efficiency as a competitiveness strategy rather than a mere compliance requirement, advancing green chemistry despite persistent skills and financing gaps, and unlocking untapped potential in industrial energy efficiency and renewable energy. Robust self-monitoring systems that generate reliable consumption and emissions data were identified as foundational to sustainability and circularity, while success factors for scaling resource efficiency included data integrity, traceability, skilled human resources, improved access to finance, and greater piloting of innovative solutions. Reliable data, an integrated nexus approach, and structured collaboration among manufacturers, brands, regulators, and financial institutions emerged as the day’s central take-home messages. (GIZ LinkedIn)
Energy Efficiency and Renewable Energy
Following a keynote on the role of energy efficiency and renewable energy in addressing cost-saving and sustainability, Ms. Proma joined a panel discussion for the session named “Energy Efficiency and Renewable Energy”, alongside representatives from Textile sector, IDCOL, SREDA, and other stakeholders, examining implementation challenges, financing gaps, and the policy environment needed to accelerate industrial energy transition. The session was moderated by Mr. Kazi Ahsan Uddin, Senior Energy Sector Advisor at GIZ Bangladesh.
Ms. Proma noted that investments in energy efficiency are becoming increasingly important because sustainability is now closely linked to competitiveness and market access, with European buyers looking for suppliers that can demonstrate a credible path toward reducing emissions and improving energy performance. She said energy efficiency reduces costs while renewable energy strengthens sustainability credentials, making both critical to long-term success in European markets.
On buyer expectations, she said European stakeholders are increasingly asking not whether a supplier has a sustainability policy, but whether it can show the data, the targets, and the results, reflecting buyers’ own growing sustainability and reporting obligations. In her view, this makes energy efficiency one of Bangladesh’s strongest potential competitive advantages, since it is one of the rare investments that improves both the bottom line and the sustainability profile at the same time — meaning Bangladesh should compete not only on cost, but on efficiency, resilience, and sustainability.
Ms. Proma also spoke about the enabling role of government, saying that renewable energy investment for textile factories must be easy to approve, easy to finance, and easy to connect to the grid. She called for streamlined approvals, stronger net-metering implementation, greater bank financing for rooftop solar and energy-efficiency projects, and credible third-party ownership or leasing models, noting that the private sector is ready to invest but needs a framework in which renewable energy projects are commercially viable, technically reliable, and administratively simple.
On the compliance side, Ms. Proma pointed to the broader landscape facing exporters, including rising documentation and monitoring costs and the rapid evolution of EU regulatory frameworks, warning that Bangladesh risks losing EU market access — or facing higher tariffs under the Standard GSP — if a free trade agreement is not concluded in time. She noted that the Bangladesh government is currently engaging the EU on FTA negotiations that could secure zero-tariff access, and that the share of recycled fiber blended into textile production, currently around 20 percent, has the potential to grow toward 50 percent depending on policy support, cost, and buyer readiness.
Beyond the panel discussion, the event highlighted the importance of self-monitoring mechanisms as a foundation for guiding a company’s sustainability journey, and showcased cost-saving, sustainable business cases within the water–chemical–energy–waste nexus to help factories build stronger readiness for global regulatory requirements. The day’s findings and research were also validated directly with factory representatives, including water, energy, and chemicals managers, sustainability experts, and general management.
EuroCham Bangladesh’s participation reflects the Chamber’s continued engagement with the country’s apparel and textile sector as it works to strengthen energy efficiency, attract renewable energy investment, and stay aligned with evolving EU market requirements.
Najifa Arshad
Operations | EuroCham Bangladesh
EuroCham Bangladesh Attended Danish Constitution Day Reception in Dhaka
EuroCham Bangladesh Executive Director, Arick Shama Proma attended a reception hosted by the Ambassador of Denmark, H.E. Mr. Christian Brix Møller, on the occasion of Danish Constitution Day, held at the Danish residence in Baridhara, Dhaka. The evening event featured remarks and a shared address by Professor Dr. A. K. Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS), on “Challenges and Opportunities for Bangladesh Towards 2035,” followed by a Q&A session.
Danish Constitution Day, observed on June 5th each year, is a national celebration of democracy, freedom, and fundamental rights in Denmark. For Denmark, democracy is regarded not merely as a system of government but as a way of life, shaped through dialogue, trust, and inclusion — a principle that has guided the country’s gradual evolution toward its current model of participatory, pluralistic governance.
In his remarks, Ambassador Møller reflected on Denmark’s democratic journey and noted that disagreement is a natural and accepted part of democratic life, with compromise and consensus-building across differences often serving as the foundation for progress. He expressed encouragement over Bangladesh’s ongoing constitutional reform discussions under the July Charter framework, voicing hope for an inclusive process built on broad participation and dialogue among stakeholders.
The occasion also touched on broader economic ties between Denmark and Bangladesh, including opportunities for trade and investment. As highlighted by industry representatives at the event, the Danish Embassy’s support for Danish companies in Bangladesh — including through the Danish Business Alliance for Sustainable Supply & Value Chains (DBAS) — reflects the growing momentum around this partnership.
Najifa Arshad
Operations | EuroCham Bangladesh
EuroCham Attends Post-Budget Analysis Sessions on the Finance Bill and National Budget FY2026-27
EuroCham Bangladesh attended several post-budget analysis sessions on the Finance Bill 2026 and the National Budget FY2026-27 in June 2026, following the official declaration of the National Budget 2026-27, reflecting its continued engagement in policy dialogue on taxation, VAT, customs, regulatory reform, investment climate, and private-sector competitiveness. The sessions, organised by SMAC Advisory Services Ltd., the Australia-Bangladesh Chamber of Commerce and Industry (ABCCI), and the Nordic Chamber of Commerce and Industry in Bangladesh (NCCI), brought together tax professionals, business leaders, chambers, policymakers, diplomats, and private-sector representatives to discuss the implications of the proposed fiscal and regulatory changes for businesses in Bangladesh.
EuroCham Bangladesh was honoured to attend “The Finance Bill 2026 Unveiled”, organised by SMAC Advisory Services Ltd. on Sunday, 14 June 2026, at Gulshan Club Limited, Dhaka. The session featured a keynote presentation on key changes proposed under the Finance Bill 2026 and related SROs, covering business-relevant updates on income tax, VAT, customs, and regulatory compliance. The event also included a panel discussion and Q&A session with representatives from the public and private sectors, including business leaders, tax professionals, NBR officials, and representatives from SMAC Advisory. Discussions focused on the implications of the proposed budget for investor confidence, fiscal predictability, supplementary duties, VAT and customs changes, and the broader conditions required to attract foreign direct investment. Speakers welcomed the budget’s positive signalling for businesses and taxpayers, while also highlighting the need for timely follow-up on unresolved issues relating to tax burden, inflation, and the investment environment (The Business Standard, 2026). Readers can access SMAC’s publicly available resources, including the Finance Bill 2026 and Finance Act 2026 presentation decks, through the SMAC Library.
EuroCham also attended a high-level seminar hosted by the Australia-Bangladesh Chamber of Commerce and Industry (ABCCI) at Radisson Blu Water Garden Hotel, Dhaka, focused on the implications of the National Budget FY2026-27 for bilateral trade, private-sector growth, and investment between Australia and Bangladesh. The seminar brought together senior diplomats, representatives of foreign missions, government officials, chambers of commerce, business executives, corporate leaders, and ABCCI members for a structured discussion on the budget’s policy direction. The technical sessions included analysis of the Finance Bill 2026, private-sector compliance, cash-flow management, cost of doing business, Australia-Bangladesh trade opportunities, clean energy, cross-border investment, digital and services trade, and the reforms required to strengthen Bangladesh’s competitiveness in the post-LDC era (The Daily Observer, 2026; New Age, 2026).
EuroCham further attended “Budget Insights 2026”, the annual flagship post-budget dialogue hosted by the Nordic Chamber of Commerce and Industry in Bangladesh (NCCI). The session featured a keynote presentation on the Finance Act 2026, with discussions on corporate taxation, VAT changes, macroeconomic priorities, fiscal discipline, and the need to broaden the tax base for sustainable growth. The dialogue also included perspectives from senior NBR officials on the evolving tax and regulatory landscape, providing participants with useful clarity on policy direction and implementation issues. The event reflected the continued importance of public-private dialogue in helping businesses understand fiscal changes and prepare for their practical implications (NCCI LinkedIn, 2026).
Through its participation in these three budget analysis sessions, EuroCham Bangladesh continued to engage with the wider business community on the implications of the FY2026-27 budget and Finance Bill. The discussions provided useful platforms to better understand proposed fiscal and regulatory changes, exchange perspectives with policymakers and business stakeholders, and assess how the evolving budget framework may affect investment planning, compliance, competitiveness, and the broader private-sector operating environment in Bangladesh.
Sirajam Munira Binte Hafiz
Operations | EuroCham Bangladesh
EuroCham Bangladesh Presents at Development Partners’ Skills Development Working Group Meeting
The Development Partners (DP) Skills Development Working Group (SDWG) invited EuroCham to attend its meeting at the EU Delegation in Dhaka and present on the Chamber’s work to identify potential areas of cooperation on skills development priorities and private sector engagement in Bangladesh. The working group, co-led by the EU Delegation and GIZ, consists of the EU Delegation, GIZ, ILO, the World Bank, and the British Council. EuroCham Bangladesh Executive Director, Arick Shama Proma, represented the Chamber at the meeting.
As part of the agenda, Ms. Proma delivered a presentation on EuroCham’s mandate, structure, and potential collaboration with the SDWG, outlining the Chamber’s role in representing European business interests in Bangladesh and its support for future EU–Bangladesh Free Trade Agreement (FTA) discussions through business surveys. She detailed EuroCham’s core functions — advocacy, business facilitation, and networking — and underscored the growing importance of skills development and continuous upskilling in helping the local workforce meet evolving EU requirements.
Ms. Proma also shared updates on EuroCham’s upcoming activities, including planned sectoral dialogues and preparations for the EU Business Forum, and outlined several areas where the Chamber could work more closely with the SDWG going forward — among them knowledge sharing, skills mapping, support for high-potential sectors, and stronger linkages between industry and skills development.
The presentation was followed by a Q&A session, during which Ms. Proma responded to questions on how EuroCham plans to identify priority sub-sectors for engagement, explaining that the Chamber will conduct detailed sector-by-sector studies, beginning with agro-food. Members of the working group agreed to follow up directly with EuroCham to explore engagement opportunities with its member companies and to receive regular updates and newsletters from the Chamber.
Najifa Arshad
Operations | EuroCham Bangladesh
EuroCham Bangladesh at the TextileGenesis Industry Forum 2026
The TextileGenesis Industry Forum was held on 18 June 2026 at the Mezzanine Level, International Convention City Bashundhara (ICCB), Dhaka, as part of Intex Bangladesh 2026, a three-day international textile sourcing exhibition (18–20 June) organised by Worldex India and recognised as one of South Asia’s leading B2B textile sourcing platforms. Within the exhibition’s Interactive Business Forum (IBF) Seminar Series, the 18 June session was held in association with TextileGenesis, the Lectra-owned digital traceability platform, bringing together brands, manufacturers, certification bodies, and supply chain partners to advance dialogue on traceability, transparency, and sustainable sourcing across the textile value chain. The session began with opening remarks, including a speech from EuroCham Bangladesh Executive Director Arick Shama Proma, followed by a TextileGenesis presentation and a panel discussion on “Scaling Sustainable Materials Across Global Supply Chains,” before closing with a networking and high tea reception.
In her remarks, Ms. Proma noted that the textile and apparel industry is undergoing one of the most significant transformations in its history, shifting from a focus on cost, quality, and speed toward transparency, traceability, sustainability, and compliance — a change she described as forming a new foundation for global trade rather than a passing trend. She highlighted the role of digital traceability platforms in helping companies build verifiable, fiber-to-finished-product supply chains that strengthen trust, improve risk management, and support compliance with emerging regulations.
Speaking on Bangladesh’s position as one of the world’s leading apparel sourcing destinations, Ms. Proma said the industry now has the opportunity to move beyond its demonstrated resilience and competitiveness to become a global leader in sustainable and traceable manufacturing — a goal she stressed will require close collaboration across brands, manufacturers, technology providers, certification bodies, policymakers, and industry associations.
Speaking about EuroCham Bangladesh’s own role, Ms. Proma reaffirmed the Chamber’s role in strengthening trade, investment, and business cooperation between Bangladesh and Europe, describing the Chamber as a platform for dialogue, advocacy, and partnership that promotes sustainable business practices, responsible sourcing, innovation, and regulatory alignment. She reiterated EuroCham’s continued commitment to supporting initiatives around sustainability, responsible sourcing, and digital transformation, and closed by congratulating TextileGenesis for convening the forum and contributing to a more transparent and responsible textile industry.
EuroCham Bangladesh’s participation reflects the Chamber’s broader engagement with the country’s apparel and textile sector as it navigates evolving global expectations around traceability and sustainable sourcing.
Najifa Arshad
Operations | EuroCham Bangladesh
EuroCham Bangladesh at High-level Stakeholder Consultation on Investment, Trade, and Decent Work Agenda
On 22 June 2026, a stakeholder consultation on “Recommendations for Aligning the Investment, Trade, and Decent Work Agenda for Resilient and Inclusive Supply Chains” was held at the Hotel InterContinental Dhaka. The event was co-organized by the International Labour Organization (ILO), the Ministry of Commerce (MoC), and the Bangladesh Investment Development Authority (BIDA).
EuroCham took part in the dialogue, which was informed by key recommendations from an earlier workshop held on 7–8 June 2026. Discussions centered on the findings of an in-depth examination of three priority export sectors—aquaculture, leather and leather goods, and plastics recycling and waste management—with a focus on supply chain resilience, competitiveness, and decent work challenges within each sector
The 22 June session was attended by Chief Guest Honorable Khandakar Abdul Muktadir, Minister of Commerce, Industry and Textiles & Jute, along with Mr. Max Tuñón, Country Director of ILO Bangladesh; H.E. Mr. Michael William Miller, Ambassador of the European Union to Bangladesh; and Ms. Carol Flore-Smereczniak, UN Resident Coordinator ad interim in Bangladesh. The event also included representatives from relevant embassies and government bodies, as well as development partners, United Nations agencies, international financial institutions, economic and policy think tanks, academic and research institutions, and trade and investment experts.
Presentations covered key priority areas identified from the workshop, including ease of doing business, traceability in aquaculture and plastics supply chains, Responsible Business Conduct (RBC) and MoC Cell operationalisation, and enforcement and compliance progress at the Savar Tannery Estate. This was followed by open discussions among development partners, economists, think tanks, and private sector and research institutions, and a session to identify concrete opportunities for collaboration and next steps.
EuroCham Bangladesh’s participation reflects the Chamber’s continued commitment to constructive dialogue between European businesses and Bangladeshi institutions on trade competitiveness, responsible business conduct, and supply chain resilience.
Najifa Arshad
Operations | EuroCham Bangladesh
Members Highlights
Frontline to Future: 20th Bangladesh Denim Expo
About Bangladesh Denim Expo
Bangladesh Denim Expo was created to strengthen Bangladesh’s position in the global denim industry. Since its beginning, it has become a dedicated meeting point for the people and companies shaping denim — from fabric and garment production to washing, finishing, chemicals, trims, machinery, technology, and design. Held in Dhaka, the Expo gives international visitors a direct view of Bangladesh’s denim capability and the wider supply chain behind it. It supports business connections, product discovery, and industry dialogue, while spotlighting the country’s manufacturing strength. Beyond volume and production capacity, the platform reflects how the industry is evolving toward better design, cleaner processes, traceable sourcing, responsible manufacturing, and stronger global partnerships.A Global Footprint
Since 2014, Bangladesh Denim Expo has connected the global denim industry with Bangladesh’s manufacturing and sourcing ecosystem. Held biannually in Dhaka, it brings together manufacturers, mills, suppliers, brands, buyers, technology providers, innovators, industry leaders, and policymakers from across the denim value chain — spanning fabrics, garments, washing, finishing, chemicals, trims, machinery, technology, and design. To date, the Expo has featured 400+ exhibitors from 28+ countries, welcomed 90,000+ attendees from 70+ countries, engaged 2,250+ companies, and delivered 110+ expert-led knowledge sessions through panels, seminars, and presentations built specifically for denim professionals.About the 20th Edition: “Frontline to Future”
The 20th edition of the Bangladesh Denim Expo took place on 10–11 June 2026 at the International Convention City Bashundhara (ICCB), Dhaka, under the theme “Frontline to Future.” This milestone edition highlighted Bangladesh’s evolution from a trusted sourcing destination to a strategic denim leader — with an emphasis on eco-friendly practices, responsible fashion, and innovative solutions across the industry. The event featured 50+ exhibitors from 12+ countries and welcomed 5,800+ visitors representing 38+ countries and 1,080+ companies. Exhibitor categories spanned fabric mills, garment manufacturers, washing laundries, accessory producers, and technology providers. A dedicated Trend Zone showcased denim styles and innovations, offering inspiration to industry professionals across both days.
The inaugural ceremony, held on 10 June 2026 from 3:30–4:00 PM at ICCB, Dhaka, set the strategic direction for the 20th Bangladesh Denim Expo under the “Frontline to Future” theme. The session examined Bangladesh’s transition from a volume-led sourcing destination to a more resilient, innovative, and higher-value denim and apparel hub, with speakers acknowledging the industry’s progress while highlighting the need for infrastructure reform, supportive policy, market diversification, stronger labour standards, environmental responsibility, and deeper collaboration among government, industry, buyers, development partners, and investors.
Guest of Honor: H.E. Michael Miller, EU Ambassador to Bangladesh
Special Guests:
- Mahmud Hasan Khan Babu, President, BGMEA
- Javier Santonja Olcina, Regional Head, Bangladesh & Pakistan, Inditex
- Luthmela Farid, Director, Pacific Jeans and Senior Vice President, Chittagong Women Chamber of Commerce and Industries
Opening Remarks: Mohiuddin Rubel, Managing Director, Bangladesh Apparel Exchange and Former Director, BGMEA
Across the two-day event, the Expo hosted five thematic panel discussions addressing the major issues and future strategies shaping the industry:
- Negotiating the Future: Trade Agreements and Bangladesh Apparel in the Post-LDC Era
- Stitching the Future: Just Transition in Bangladesh’s Apparel Industry
- Beyond Apparel: Product Diversification As The Key To The Future Economy
- Financing the Future: Unlocking Green and Responsible Investment in Bangladesh’s Denim & Apparel Sector
- Woven in Data: The Past and Future of Bangladesh’s Global Competitiveness
The Expo reinforced Bangladesh’s role as a global hub for sustainable denim production, while creating a platform for stakeholders to engage, collaborate, and align around a more sustainable and innovative future for the industry.
Since founding the Expo in 2014, Mostafiz Uddin has grown it into one of the most recognized denim platforms in the world, connecting the global denim industry with Bangladesh’s manufacturing and sourcing ecosystem. Under his leadership, alongside BAE Managing Director Mohiuddin Rubel and the wider BAE team, the Bangladesh Denim Expo continues to position the country not just as a manufacturing base, but as a strategic partner shaping the future of global denim.
Full event report: BDE 20th Edition PDF
Watch the highlights: YouTube
Learn more: Bangladesh Denim Expo
DANO Wins Silver at the Digital Marketing Award for the “আপনার DANO-তে আপনার ফ্যামিলি” Pack Refresh & UGC Campaign
On 20 June, Arla Foods Bangladesh, in collaboration with Mindshare Bangladesh and Madmen Digital, proudly received the Silver Award at the Digital Marketing Award for its impactful campaign, “আপনার DANO-তে আপনার ফ্যামিলি”—a campaign that successfully blended brand transformation, consumer participation, and digital storytelling.
For decades, DANO has been a trusted household name in Bangladesh, nourishing generations of families. As consumer lifestyles continue to evolve, the brand embraced a new challenge: how to honor its rich heritage while remaining relevant to a new generation that values authenticity and connection.
This led to the launch of “Modern Life-এ Modern DANO”, a packaging refresh campaign centered around a heartwarming digital film that reflected the journey of modern families alongside DANO’s refreshed identity. The campaign carried a simple yet meaningful message: as families evolve, so does DANO.
The transformation went far beyond the new packaging. Through “আপনার DANO-তে আপনার ফ্যামিলি,” one of Bangladesh’s largest user-generated content (UGC) initiatives, families across the country were invited to share photos featuring the new DANO pack. Every submission was carefully reviewed by an expert judging panel, while engaging reels, influencer collaborations, and behind-the-scenes content kept the excitement alive throughout the campaign.
The grand prize offered more than BDT 100,000. The winning family received a professional family portrait that was featured on actual DANO packs—placing real consumers on retail shelves nationwide and creating a unique celebration of the families who have trusted the brand for generations.
By putting real families at the heart of the campaign, Modern Life-এ Modern DANO transformed a packaging refresh into a meaningful celebration of trust, belonging, and modern family life. The Silver Award is a testament to the power of combining a clear brand purpose with authentic consumer participation, reinforcing DANO’s enduring connection with families across Bangladesh.
M. A. Jabbar, Managing Director of DBL Group & Neural Semiconductor and President of BSIA, Leads Silicon River USA Roadshow 2026: From Bangladesh to Silicon Valley
The BSIA Silicon River USA Roadshow 2026 marked a significant milestone in Bangladesh’s journey toward establishing a globally connected semiconductor ecosystem. More than a series of visits, the roadshow was a strategic initiative designed to strengthen international partnerships, connect with the Bangladeshi semiconductor diaspora, foster industry-academia collaboration, and position Bangladesh as an emerging destination for semiconductor design, research, and innovation.
Neural Semiconductor Limited was proud to be part of this landmark initiative, joining fellow BSIA delegates in representing Bangladesh across some of the world’s most influential technology and semiconductor hubs.
The journey began in Austin, Texas, where the delegation engaged with leading semiconductor companies and technology organizations to explore opportunities in advanced semiconductor design, research collaboration, workforce development, and global business partnerships. These discussions focused on identifying areas where Bangladesh’s growing engineering talent can contribute to the global semiconductor value chain while attracting future investment and collaboration.
The roadshow then continued to Phoenix, Arizona, where the delegation connected with more than 80 Bangladeshi-origin semiconductor professionals currently working in world-renowned technology companies. These interactions reinforced the importance of leveraging the expertise of the Bangladeshi diaspora to accelerate knowledge transfer, mentorship, research collaboration, and industry growth.
A key milestone in Phoenix was the engagement with Arizona State University (ASU), where discussions centered on research collaboration, internship opportunities, academic partnerships, faculty exchange, and workforce development. These conversations highlighted the shared vision of building a sustainable talent pipeline capable of supporting Bangladesh’s long-term semiconductor ambitions.
The final stage of the roadshow brought the delegation to Silicon Valley, the global center of innovation and technology. Here, the delegation held strategic engagements with leading organizations including SanDisk, GlobalFoundries, Synopsys, Intel, Arm, CREDO, Yield Engineering Systems (YES), and UC Berkeley SkyDeck. These meetings explored opportunities spanning semiconductor design services, advanced packaging, EDA technologies, startup innovation, investment, research collaboration, and ecosystem development.
An important highlight of the Silicon Valley visit was the Reception Dinner, where industry leaders, innovators, entrepreneurs, investors, and Non-Resident Bangladeshis (NRBs) came together for an evening of meaningful networking and collaboration. The gathering strengthened relationships across the global Bangladeshi technology community while opening new opportunities to accelerate Bangladesh’s presence in the international semiconductor ecosystem.
Leading this transformative initiative was Mr. M. A. Jabbar, Managing Director of DBL Group & Neural Semiconductor Limited and President of the Bangladesh Semiconductor Industry Association (BSIA), alongside Professor Dr. Muhammad Mustafa Hussain, Chief Architect of the Silicon River Initiative, and fellow BSIA delegates. Throughout the roadshow, they championed a shared vision of connecting Bangladesh with the world’s leading semiconductor companies, universities, research institutions, and innovation ecosystems.
The overarching objective of the Silicon River USA Roadshow extends far beyond individual meetings. It is about building an ecosystem where industry, academia, government, entrepreneurs, investors, and the global Bangladeshi diaspora work together to transform Bangladesh into a globally recognized semiconductor destination. By creating international partnerships, nurturing local talent, encouraging research and innovation, and strengthening technology transfer, Bangladesh is laying the foundation for sustainable growth in one of the world’s most strategic industries.
For Neural Semiconductor Limited, participating in this journey reflects our continued commitment to advancing Bangladesh’s semiconductor capabilities and contributing to the nation’s long-term technological future. We remain dedicated to supporting global collaboration, developing world-class engineering talent, and delivering high-quality semiconductor design services that connect Bangladesh with the global innovation landscape.
The BSIA Silicon River USA Roadshow 2026 was more than a roadshow, it was a statement of ambition, collaboration, and possibility. From Austin to Phoenix to Silicon Valley, every conversation, partnership, and connection brought Bangladesh one step closer to becoming an integral part of the global semiconductor ecosystem.
Building Bridges Between Bangladesh and Silicon Valley.
Building the Future of Bangladesh’s Semiconductor Industry.
From Waste to Value: EU Ambassadors Visit Recover™’s Circular Textile Plant in Bangladesh
Recover™ recently welcomed H.E. Mr. Michael Miller, Ambassador of the European Union to Bangladesh, H.E. Mr. Joris van Bommel, Ambassador of the Kingdom of the Netherlands to Bangladesh, and H.E. Mr. Gabriel María Sistiaga Ochoa de Chinchetru, Ambassador of the Kingdom of Spain to Bangladesh, to its recycling facility in Bangladesh, as well as Ms. Nuria Lopez, Chairperson of EuroCham Bangladesh.
During the visit, the ambassadors toured Recover’s plant, which mechanically transforms textile waste into high-quality recycled cotton fiber, drawing on the company’s 75 years of recycling expertise. Discussions centered on how Bangladesh’s textile industry can prepare for the EU’s upcoming Ecodesign for Sustainable Products Regulation (ESPR), which is expected to introduce new requirements around durability, circularity, recycled content and traceability, with its Delegated Act anticipated in 2027. As a major textile manufacturing hub, Bangladesh currently depends heavily on imported virgin raw materials — making local textile-to-textile recycling capacity a significant opportunity to reduce that dependency and help manufacturers stay ahead of changing export-market expectations.
Ambassador Miller described Recover’s facility as an “exceptionally modern plant” and noted, “We are very impressed with what we see. What you do falls very much in line with our own ambitions.” Ambassador van Bommel remarked that Recover is “walking the talk on sustainability and showing that it is really possible.” Ambassador Sistiaga Ochoa de Chinchetru highlighted that Recover represents the largest Spanish direct investment in Bangladesh’s textile and recycling sector, pointing to its potential to encourage further foreign direct investment in the country.
The visit reflected the growing alignment between European regulatory priorities and Bangladesh’s textile manufacturing base, with Recover’s Bangladesh facility positioned as a working example of how circular production can be scaled locally.
Read more: Recover™ Newsroom | LinkedIn
Acting for Our Planet: CMA CGM Clears 1,960kg Plastic Waste at Bangladesh National Zoo
In recognition of World Environment Day, CMA CGM reinforced its commitment to environmental responsibility through a plastic waste clean-up and recycling initiative at the Bangladesh National Zoo on 6 June 2026. Organized by CMA CGM Bangladesh team in partnership with social enterprise Garbageman, the activity helped protect one of Dhaka’s most visited public spaces through practical, hands-on action.
The initiative brought together CMA CGM employees and their children, colleagues from CEVA Logistics, CMA CGM Group’s logistics arm, and customers from DSV, EFL, GEODIS, Kunehe+Nagel, and Crown Logistics. Working across pathways and areas surrounding the animal enclosures, volunteers collected 1,960kg of plastic waste, which will be recycled by Garbageman, helping reduce pollution while advancing responsible waste recovery and circular economy practices.
The activity reflected CMA CGM’s belief that protecting shared ecosystems is a collective responsibility and demonstrated how private-sector collaboration can deliver practical impact in the communities where it operates.
The effort sits within CMA CGM Group’s sustainability strategy, structured around three pillars: Acting for Our People, Acting for Our Planet, and Acting for Our Partners. Under “Acting for Our Planet”, the Group is committed to fighting plastic pollution, restoring natural environments, and preserving biodiversity, alongside its broader goal of achieving Net Zero Carbon by 2050.
Control Union Bangladesh Advances Community Well-being Through CSR Initiatives
Control Union Bangladesh is committed to driving sustainability, social responsibility, and community development through impactful initiatives that create long-term value for people and the environment. As part of this commitment, the organization actively implements programs that support public health, environmental conservation, and community well-being. Through its corporate social responsibility (CSR) efforts, Control Union Bangladesh continues to contribute to a more sustainable and inclusive future.
CU Bangladesh – Safe Sanitation Project 2026 (13/06/2026): Control Union Bangladesh successfully completed its Safe Sanitation Project in Amritapara Gasban, Vaibonchora Union, Khagrachari Sadar, establishing sanitation facilities for both the local community and a school. The initiative enhanced access to safe and hygienic sanitation, contributing to improved public health, dignity, and sustainable community development.
World Blood Donor Day 2026 (14/06/2026): Blood Donation Program at Control Union Bangladesh, Control Union Bangladesh marked World Blood Donor Day with a blood donation drive at its Dhaka office, reinforcing its commitment to CSR and community welfare. The initiative encouraged voluntary blood donation and highlighted the collective spirit of employees in supporting a life-saving cause.
Together, these initiatives highlight Control Union Bangladesh’s ongoing efforts to make a positive difference in society. By investing in people, communities, and the environment, the organization continues to support a healthier, greener, and more sustainable future for all.
Rahman’s Chambers: Recent Highlights and Achievements
Pro Bono and Knowledge-Sharing Initiatives
Demonstrating a commitment to strengthening legal frameworks through knowledge-sharing, Rahman’s Chambers recently hosted a hybrid seminar titled “Navigating Compliance Under the Bangladesh Labour (Amendment) Act, 2026”. Held on 25.06.2026, the session was presented by Mr. Hasan Al Arafat, Department Head, and Mr. Md. Tawhidul Hassan, Associate. The seminar provided a general overview of the 2026 amendment, describing it as the most consequential overhaul since the original Bangladesh Labour Act of 2006. It directly responds to international commitments by aligning national legislation closer to ILO Conventions. The core objectives focused on understanding major changes to the labour laws, analyzing immediate impacts, identifying employer obligations, and discussing operational challenges.
The comprehensive presentation addressed over 90 modifications, including rigid new frameworks against workplace discrimination, retaliation, and unfair labor practices. Key discussions highlighted enhanced benefits, such as an increase in maternity leave to 120 days and festival holidays to 13 days, alongside the strategic option to integrate with the Universal Pension Scheme (“Pragati”) as an alternative to the Provident Fund. Furthermore, the speakers detailed new employer obligations to form Complaint Resolution Committees and Safety Committees, outlined lowered registration thresholds for trade unions, and introduced new institutional frameworks like the ADR Authority and the National Social Dialogue Forum. The session concluded by emphasizing that proactive corporate policy alignment is no longer optional, but critical for mitigating corporate risks in a restructured employment landscape.
For further insights, legal updates, and resources, please visit our website at www.rahmansc.com.
Tampaco Group Co-Sponsors Dhaka Industrial Packaging Expo 2026, May 2026
The three-day “Dhaka Industrial Packaging Expo 2026” began on Thursday at the Bangladesh-China Friendship Conference Centre (BCFCC) in Agargaon, Dhaka, bringing together local and international stakeholders from the packaging and processing industries.
The expo has been jointly organised by the Bangladesh Flexible Packaging Industries Association (BFPIA) and ExpoNet Exhibition Pvt. Ltd., with Tampaco Group as the co-sponsor. Organisers said the event aims to create an international business platform focused on packaging technology, sustainable manufacturing, energy efficiency and strengthening industrial backward linkage industries…Read more on The Asian Age
Trade and Business Statistics: Bangladesh Bank Data
