Overview of December Issue Monitoring, Rounds 11 and 12
This report summarizes the results of weekly monitoring on key issues in Bangladesh during the third and fourth weeks of December 2025, covering rounds 11 and 12. It highlights the developments most relevant to Korean companies, with a focus on interim government administrative reform, progress under the IMF program, movements in the exchange rate and inflation, and the status of major infrastructure projects.
Weeks 3-4 of Dec.
Monitoring Period
Rounds 11-12 combined
8
Key Issues
3 political, 3 economic, 2 trade
121.8 BDT/$
Exchange Rate
+0.3% vs. prior week
9.1%
Inflation (CPI)
-0.3%p vs. prior month
$4.7B
Exports
December preliminary, led by RMG
$21.8B
FX Reserves
Reflecting IMF inflows
Political and Administrative Developments
01
Issue 1: Interim Government Releases Administrative Reform Committee Report
In the third week of December, the interim government administrative reform committee unveiled a restructuring plan for six ministries. A possible merger between the Ministry of Commerce and the Ministry of Industries is under review, which could alter import licensing and industrial permitting procedures. Korean companies operating in Bangladesh should prepare for potential changes in the authorities responsible for approvals and permits.
02
Issue 2: Discussions on the General Election Schedule
In the fourth week of December, the Chief Adviser of the interim government suggested that a general election could be held in the first half of 2026. The Election Commission plans to complete voter list updates by February 2026. Once the election schedule is finalized, some policy uncertainty may ease, but businesses should remain alert to the possibility of demonstrations and hartals during the election period.
03
Issue 3: Parliament Passes Labor Law Amendments
Parliament passed amendments to labor law expanding the right of EPZ workers to form unions. The measure reflects ILO recommendations and is linked to conditions for restoring GSP benefits in the United States and the European Union. Around 30 Korean companies operating in Bangladeshi EPZs should pay closer attention to labor relations management.
Economic and Financial Trends
Key Economic Indicators in December
| Indicator | November | Dec. Weeks 1-2 | Dec. Weeks 3-4 | Change |
|---|---|---|---|---|
| Exchange Rate (USD/BDT) | 121.2 | 121.5 | 121.8 | Depreciation continues |
| CPI Inflation | 9.4% | - | 9.1% (est.) | Slight decline |
| Call Rate | 8.5% | 8.5% | 8.5% | Unchanged |
| Equity Index (DSEX) | 5,200 | 5,150 | 5,180 | Sideways |
| FX Reserves | $21.2B | $21.5B | $21.8B | Increasing |
| Monthly RMG Exports | $4.3B | - | $4.7B (prelim.) | +9.3% YoY |
01
Issue 4: Bangladesh Bank Reviews Wider Exchange Rate Band
Bangladesh Bank is considering expanding the permitted exchange-rate crawling band from +/-1% to +/-2%. This is part of efforts to meet IMF program requirements related to greater exchange-rate flexibility, and if implemented it may lead to further taka depreciation. For Korean exporters, foreign exchange risk will rise under BDT-denominated contracts, making USD-based contracts more advisable.
02
Issue 5: Notice of Higher Energy Tariffs
In the fourth week of December, the Bangladesh Energy Regulatory Commission announced that industrial electricity tariffs will rise by 12% from January 2026. Gas tariffs are also scheduled to increase by 8%. This will lift operating costs for Korean manufacturers in Bangladesh, particularly textile and garment factories facing higher production expenses.
Trade and Commercial Policy Trends
Issue 6: Import Regulation Changes
Finished ElectronicsAT raised from 5% to 10%
Capital GoodsCD kept at 1% (preferential)
Raw MaterialsSelected tariff cuts
Luxury GoodsAdditional SD under review
Issue 7: FTA and Trade Negotiations
LDC GraduationScheduled for Nov. 2026
EU GSP+Application prep underway
India CEPAThird negotiation round completed
Korea-BangladeshIPA renewal under discussion
Issue Emerges
Policy, economic, or trade event occurs
→↓
Local Monitoring
Track media and government announcements
→↓
Impact Review
Assess implications for Korean businesses
→↓
Response Planning
Identify practical actions to take
→↓
Reporting
Compile the weekly monitoring report
→↓
Follow-up Tracking
Review implementation the next week
Guide to Preparing Economic and Trade Reports (250703)See the reporting framework and methodology
Bangladesh Textile Machinery Market TrendsExplore textile sector dynamics affected by higher energy costs
The main issues in the third and fourth weeks of December were interim government administrative reform, the possible expansion of the exchange-rate band, and the formal notice of higher energy tariffs. Discussions on the 2026 general election suggest some early easing of political uncertainty, but preparation for the loss of tariff preferences following LDC graduation in November 2026 remains urgent. Korean businesses should review exchange-rate exposure and reassess cost structures in anticipation of rising energy expenses.
Issue MonitoringBangladeshPolitical TrendsEconomic TrendsWeekly Report
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