United News of Bangladesh

Bangladesh’s ongoing energy crisis may ease temporarily but it cannot be fully resolved without a decisive shift to renewable energy, said the Centre for Policy Dialogue (CPD) on Monday. “We must think beyond fossil fuels,” CPD Research Director Dr Khondaker Moazzem said at the 4th Bangladesh-China Renewable Energy Forum organised by CPD under the theme “Transforming Crisis into Opportunities: Renewable Energy Development under the New Government”, at a hotel in Dhaka. “The crisis that fossil-fuel dependency has created across the world is not something that will be resolved overnight. Bangladesh needs to seriously consider alternatives in its energy sector,” he said. The veteran economist underscored China's pioneering role in the global renewable energy revolution and called for maximising bilateral cooperation in the sector. “China is at the forefront of renewable energy through its innovations. Chinese investment in Bangladesh's renewable energy sector is already substantial. This forum will deliberate on how to further enrich that investment going forward,” he said CPD's presentation introduced a conceptual framework: ‘3F-3R’: ‘Fallen Fossil Fuel, Rising Resilient Renewables’, to describe the structural shift Bangladesh must make. The think tank warned that even if the ongoing Middle East conflict subsided and the Strait of Hormuz reopened immediately, Bangladesh would continue bearing the economic burden of energy-supply disruptions for years to come. Using econometric modelling, CPD projected that geopolitical oil shocks would inflict limited but persistent macroeconomic damage through multiple channels: GDP losses in the range of 0.21 to 0.53 percent, inflationary pressure between 0.6 and 13.6 percent, and taka depreciation of 0.56 to 4.5 percent in the medium to long term. The BNP government has announced a target of generating 10,000 megawatts of electricity from renewable sources by 2030, and CPD estimated the associated investment requirement at approximately USD 9.36 billion, spanning utility-scale solar, rooftop and distributed solar, wind, and biomass and biogas installations. The 4th Forum, unlike its three predecessors, drilled down specifically on Power Purchase Agreements (PPAs) as the central contractual instrument through which investment either flows into or is repelled from Bangladesh's energy sector. CPD's research found that Bangladesh's PPAs have progressively deteriorated in terms of investor protection. The country's first renewable energy PPA, drafted with external legal expertise, contained strong sovereign guarantees, well-structured international arbitration clauses, and balanced risk coverage. Subsequent revisions have steadily tilted the framework in the government's favour, the think tank said. Compounding the problem, the interim government's decision to discontinue Implementation Agreements, which had previously provided sovereign backing for investor commitments removed a critical layer of payment security precisely when renewable investment was beginning to scale. No credible substitute mechanism has since been introduced, it observed. CPD flagged that Chinese investors account for over 50 percent of total foreign direct investment in Bangladesh's renewable energy sector, making the health of PPA arrangements disproportionately consequential for Sino-Bangladeshi energy cooperation. The forum presentation catalogued a series of persistent contractual and institutional failures that have deterred investment across four successive forums since 2023. On the contractual side, normal payment cycles of two to three months routinely stretch to five to eight months in practice. Payments are nominally denominated in local currency with US dollar equivalence, yet the PPA structure provides no compensation for exchange rate depreciation during the payment gap, a growing liability as the taka weakens. In at least one documented case, investors who had signed both a PPA and an Implementation Agreement and completed construction subsequently faced government attempts to revise the agreed tariff, with no contractual remedy available to them. On the institutional side, approvals required from multiple agencies, including BPDB, PGCB, REB, SREDA, and local authorities, proceed sequentially rather than in parallel, with no coordinated timeline or accountability mechanism for delays, said CPD. Land deemed officially cleared at the central level has in multiple cases faced challenges from local actors, with different ministries operating in silos and unaware of approvals issued by others, it added. The cancellation of 31 solar project Letters of Intent by the interim government, representing approximately 5.68 gigawatts and USD 6 billion in prospective investment, with USD 300 million already committed through banking channels and 15 companies having purchased land was cited as a particularly damaging signal to the investment community. CPD benchmarked Bangladesh's PPA template against those of India, Pakistan, Kenya, Tanzania, Vietnam, the Philippines, and Saudi Arabia. The analysis revealed that Bangladesh's BPDB tender document, unlike frameworks in Pakistan, the Philippines, and Saudi Arabia, lacks payment security instruments, Implementation Agreement-equivalents, and lender step-in rights, provisions considered standard in bankable renewable energy contracts internationally. The think tank's diagnostic assessment found that enforcement was the single weakest dimension of Bangladesh's PPA architecture, followed by an imbalanced risk allocation that structurally disadvantages the investor. “In a fair ecosystem, these two dimensions cannot be weak simultaneously.” Reform Roadmap: Immediate and Medium-Term In the immediate term, the think tank called for the introduction of a revolving Letter of Credit covering three to six months of payments, backed by a sovereign guarantee or central bank support, describing it as the single most important bankability improvement available within the existing PPA structure. CPD also recommended that when BPDB extends a Commercial Operations Date deadline, the corresponding Ready for Commercial Operations Date must be extended in parallel, a structural inconsistency that currently exposes developers to liquidated damages for delays of the government's own making. Over the medium term, CPD urged the establishment of an Inter-Agency Task Force with binding standard operating procedures and time-stamped approval responsibilities; the development of a dedicated Renewable Energy Procurement Guideline covering the post-award phase; the incorporation of lender step-in rights and a Dispute Adjudication Board into the standard BPDB template; and the restoration of a credible sovereign commitment mechanism functionally equivalent to the discontinued Implementation Agreement. CPD also called on the government to declare the power and energy sector a national priority sector, expand company courts with specialised commercial law expertise, and introduce mandatory tax and duty exemptions on renewable energy equipment, particularly inverters and batteries, on which import levies currently stand at around 61.8 per cent. On the financing side, the think tank urged Bangladesh Bank to establish a dedicated low-cost fund for rooftop solar and advocated for the use of land from cancelled fossil-fuel power plants and upcoming stranded assets to host renewable energy installations. It also highlighted the potential of Chinese technology, including solar panels, inverters, and lithium iron phosphate batteries and the possibility of establishing local battery assembly facilities in partnership with Chinese companies to reduce both cost and import dependence. The EU's Carbon Border Adjustment Mechanism, taking effect in 2027, was cited as an additional structural incentive for urgency: Bangladesh's export-oriented garment and textile sector would be required to demonstrate green energy sourcing to avoid carbon levies and maintain market access in Europe. CPD noted that the Bangladesh Investment Development Authority is set to open its first overseas office in China within approximately six months, a step expected to directly facilitate Chinese investment inquiries in Bangladesh's renewable energy sector. Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood attended the event as the chief guest. The forum was also attended by Chinese investors, development finance institutions, government officials, and energy sector stakeholders.  

Prime Minister Tarique Rahman on Wednesday said the government will invite the opposition for talks on the country’s ongoing energy crisis, stressing that any practical and implementable proposals will be accepted in the interest of the people. “As the Leader of the House, I would like to inform Parliament that we will certainly invite the opposition. From our side, we are ready to sit together, hold discussions and review their proposals. If any of their suggestions are realistic and can be implemented, we will certainly act on them,” he said. The Leader of the House said regardless of whether the MPs sit on the treasury or opposition benches, they have all been sent by the people of Bangladesh to serve public interests. “So, whatever discussions or actions best protect the interests of the people of Bangladesh, Inshallah, we will certainly do that,” he added. The Prime Minister made the remarks while taking part in a discussion on a motion moved by Leader of the Opposition Shafiqur Rahman under Rule 68, seeking immediate, effective and visible steps to resolve the energy crisis and reduce public suffering. Placing the motion, Shafiqur Rahman emphasised the urgency of easing public suffering, saying the opposition was ready to extend all possible cooperation to the government in this regard. He said the current energy crisis is a global issue and not unique to Bangladesh. Shafiqur Rahman noted that the mismatch between demand and supply has created the situation, affecting all sectors, including transport, industries, agriculture, mills and factories. At the outset of his speech, the Prime Minister thanked the opposition leader and members of the opposition for raising what he described as a “highly important issue” for the country. He said the current parliament stands on the sacrifices of many martyrs and reflects the hopes and aspirations of the people of Bangladesh for a better future. Tarique Rahman noted that while there may be differences of opinion among political parties, there is no disagreement when it comes to protecting national interests and public welfare. He observed that the energy crisis is not unique to Bangladesh, but part of a broader global challenge, affecting countries and people around the world amid prevailing international realities. “As political leaders, we may differ on many issues, but we are united when it comes to safeguarding the interests of the country and its people,” the Prime Minister said. He also reiterated that his party remains open to discussions, proposals and constructive suggestions from any quarter if they serve the national interest. A total of eight members from both treasury and opposition benches took part in the discussion on the motion. While all agreed that the energy situation is an important issue, differences emerged over whether it should be described as a “severe crisis” or an “artificial crisis.” State Minister for Power and Energy Aninda Islam Amit was the first to speak when he said global energy markets have been under pressure due to geopolitical tensions in the Middle East. He said when the current government took office on February 17, the country had only seven days of fuel reserves. However, through rapid procurement and supply management, fuel availability has now been secured until May, with preparations underway for June and July. In the concluding speech, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said the situation is not a “crisis” but an “artificial line.” He claimed that some individuals are creating queues at petrol pumps and diverting fuel to the informal market for profit, causing inconvenience to genuine consumers. “We are supplying as much fuel as needed,” he said, urging journalists to investigate whether the queues reflect real demand or manipulation for profit. Home Minister Salahuddin Ahmed also said he does not consider the situation a crisis. He noted that despite price adjustments, economic activities such as agriculture, industry, education and trade have not been disrupted. He acknowledged instances of black marketing, hoarding and smuggling attempts, but said law enforcement agencies have uncovered those.

The General Economics Division (GED) of the Planning Ministry has released its March 2026 economic update, highlighting mounting challenges from the energy crisis and persistent inflation, despite some improvement in foreign exchange reserves. The report warns that the ongoing energy crisis is affecting fiscal balances, external accounts, and investment activities. Although strong remittance inflows and recent reserve gains have provided temporary relief, elevated global energy prices are likely to increase import bills and widen the trade deficit, it said. The GED noted that policymakers face difficult trade-offs. Maintaining exchange rate stability could strain reserves, while further depreciation of the taka may intensify inflationary pressures. Similarly, energy subsidies continue to shield consumers but are adding to fiscal burdens, the report noted. It recommends prioritising energy efficiency, rationalising pricing with targeted subsidies, and tightening external sector management to contain balance of payments risks. Headline inflation climbed to 9.13% in February 2026, up from 8.58% in January, driven mainly by food prices. Food inflation rose to 9.30%, surpassing non-food inflation for the first time in recent months. Rice prices, a major concern earlier, eased to 2.39%. However, rising prices of perishables – particularly vegetables and fish – offset this relief. Vegetables alone accounted for 29.13% of total food inflation. The GED highlighted a widening gap between inflation and wage growth. While inflation reached 9.13%, wage growth remained subdued at 8.06$, intensifying real income pressures, especially for lower-income households. Banking indicators showed slight moderation. Total deposits stood at Tk 1,967,907 crore in January, marginally lower than December levels. Public sector credit remained elevated at Tk 611,258.6 crore, indicating continued reliance on domestic borrowing, while private sector credit growth was modest at 6.03%. Revenue collection by the National Board of Revenue (NBR) fell significantly short of its February target. Against a revised target of Tk 42,051 crore, collections reached Tk 30,559 crore – over 27% below the target. Although this marked an 8.15% increase year-on-year, revenue declined by 17.48% compared to January. Implementation of the Annual Development Programme (ADP) weakened during the July-February period compared to the previous fiscal year, according to the report. The GED attributed the slowdown to land acquisition delays, procurement inefficiencies, and rising project costs linked to the energy crisis. A sharp increase in spending in February suggests “back-loaded implementation”, raising concerns about oversight and quality of expenditure. Foreign exchange reserves rose to USD 35.11 billion in February (USD 30.36 billion under BPM6 standards), supported by strong remittance inflows exceeding USD 3 billion. However, the GED cautioned that this stability remains fragile amid rising energy import costs. Export performance weakened, with ready-made garment (RMG) exports falling to USD 2.81 billion in February from USD 3.61 billion in January, reflecting softer global demand and higher domestic production costs. The exchange rate remained relatively stable at around Tk 122.3 per US dollar due to central bank interventions. However, the Real Effective Exchange Rate (REER) declined slightly to 124.05, indicating a gradual depreciation in real terms. While this may improve export competitiveness, the benefits are currently being offset by elevated energy-related production costs, the report noted.

The office-bearers of the Dhaka Chamber of Commerce and Industry (DCCI), led by its President Taskeen Ahmed, paid a courtesy call on Principal Secretary to the Prime Minister ABM Abdus Sattar at the Bangladesh Secretariat on Monday. During the meeting, Taskeen Ahmed said the government has already taken several timely and effective measures to mitigate the impact of the ongoing energy crisis stemming from the Middle East war. However, he stressed that sustaining people’s livelihoods, employment, industrial production and overall economic activities should remain a top priority. DCCI urges govt  to adopt proactive policy measures to safeguard economy amid Middle East tension   Taskeen underscored the need for effective initiatives and their proper implementation through stronger coordination with the private sector. The DCCI president also welcomed the government’s consideration to defer Bangladesh’s graduation from the least developed country (LDC) status, noting that continued engagement with relevant international institutions is essential. He urged the authorities to take more proactive measures to address post-LDC graduation challenges by incorporating private sector participation and implementing their recommendations. Highlighting the impact of multiple global shocks since the Covid-19 pandemic, Taskeen said the country’s CMSME sector has been the worst affected, despite contributing around 30 percent to national GDP and generating nearly 80 percent of industrial sector employment. To address challenges faced by SME entrepreneurs, he called for low-interest loan facilities, easier access to credit, simplified loan procedures, incentives and tax exemptions. Principal Secretary Abdus Sattar said the government remains committed to fulfilling people’s aspirations and will continue engaging with the private sector through dialogue to address emerging challenges, accelerate industrial activities and achieve future economic goals. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman and Acting Secretary General Dr A K M Asaduzzaman Patwary were also present at the meeting.

The Ministry of Education is considering introducing both online and offline classes at the school level amid the global energy crisis. “A proposal in this regard will be placed before the Cabinet and a decision will be taken following discussions,” Education minister ANM Ehsanul Haque Milon told reporters in the morning after a meeting with Prime Minister Tareque Rahman at the Secretariat.  “The global crisis is not only affecting Bangladesh and we don’t know how long it will continue. That is why we are thinking of bringing our school system online and adapting a blended system,” he added. He said school hours have already been disrupted due to holidays during Ramadan and various other disturbances. “Previously, classes were held five days a week. Now, we have lost many sessions, so we are considering extending school hours to a six-day week. Meanwhile, due to the international fuel crisis we are also exploring the possibility of online classes at certain times,” he said. The minister added that a recent survey showed around 85% of respondents want online learning options but cautioned that fully shifting to online education could lead to social isolation among students. “We are thinking about a balanced approach,” he said. Earlier in the morning, Minister Milon and State Minister for Mass Education Bobby Hajja met with the Prime Minister at the secretariat.

Bangladesh currently has about a month’s supply of fuel, Cabinet Secretary Nasimul Ghani said on Wednesday, noting that the country normally maintains a 15-day reserve. Ghani made the remarks during a briefing at the Press Information Department following a Cabinet meeting chaired by Prime Minister Tarique Rahman at the Secretariat. He said the government is taking steps to further increase fuel reserves to ensure stability amid the ongoing international energy crisis. Asked about the Prime Minister’s response to the ongoing international energy crisis, the Cabinet Secretary said, “The Prime Minister reviewed all available government resources, assessed progress, and examined the steps taken by the ministries. I can briefly say that the reserves are sufficient.” Commenting on panic buying, Ghani said, “Excess fuel purchased unnecessarily could go to waste. The situation should normalize in a few days once public confidence returns. Under the government’s plan, the reserves are being increased further.” PM calls for unity, tolerance to accelerate Bangladesh’s  development Regarding the rise in jet fuel prices, Ghani explained, “The international price of jet fuel has increased. Airlines operating here also follow the international rate, so the price movement is aligned with global trends.” He confirmed that the one-month reserve includes all types of fuel and added that the Cabinet Committee on Purchase has approved the acquisition of two cargoes of LNG. Ghani also said that fuel not immediately available under contracts is purchased from the spot market, and decisions have to be made quickly, often within 10 hours of the cargo’s arrival. Responding to rumors about a fuel price hike, he said, “I am not aware of any such plan, and there are no signs of it at this stage.” The Cabinet Secretary reiterated that fuel is being procured from multiple sources to maintain and expand the country’s reserves.

The government has formed a ministerial-level committee to address the global energy crisis amid the ongoing war, with Finance Minister Amir Khosru Mahmud Chowdhury appointed as its head. The decision was taken at a cabinet meeting on Thursday at the Secretariat, chaired by Prime Minister Tarique Rahman, Cabinet Secretary Nasimul Gani told reporters. When asked if the Prime Minister had issued instructions on saving electricity, the Cabinet Secretary said numerous measures have been introduced. He added that the Prime Minister's Office has launched a programme to conserve electricity. “These measures include reducing the use of lights by half. Blinds will be removed to allow more sunlight. Bathroom lights will be minimised, and energy-saving lights will be installed in corridors,” he said. Regarding air conditioners, he said, “Illegal AC units will be shut down. No AC will operate below 25 degrees Celsius.” Asked if these rules apply to mosques and ministers, he said, “This is applicable to everyone. All government offices and courts are included.” On the Middle East war situation, he added, “Energy is now a problem worldwide. If this war continues, we will face serious difficulties. That is why a ministerial-level committee has been formed to manage the crisis.” Addressing concerns over the previous lack of implementation of the 25-degree AC rule, he said, “This time, the committee will ensure proper enforcement.” They will visit offices to monitor compliance. “As a nation, we must make progress and follow the necessary measures,” the cabinet secretary added.

The Iranian rial on Wednesday fell its lowest level in history, losing more than 10% of its value since Donald Trump won the U.S. presidential election in November and signaling new challenges for Tehran as it remains locked in the wars raging in the Middle East. The rial traded at 777,000 rials to the dollar, traders in Tehran said, down from 703,000 rials on the day Trump won. Iran’s Central Bank has in the past flooded the market with more hard currencies as an attempt to improve the rate. In an interview with state television Tuesday night, Central Bank Gov. Mohammad Reza Farzin said that the supply of foreign currency would increase and the exchange rate would be stabilized. He said that $220 million had been injected into the currency market. The currency plunged as Iran ordered the closure of schools, universities, and government offices on Wednesday due to a worsening energy crisis exacerbated by harsh winter conditions. The crisis follows a summer of blackouts and is now compounded by severe cold, snow and air pollution. Despite Iran’s vast natural gas and oil reserves, years of underinvestment and sanctions have left the energy sector ill-prepared for seasonal surges, leading to rolling blackouts and gas shortages. In 2015, during Iran’s nuclear deal with world powers, the rial was at 32,000 to $1. On July 30, the day that Iran’s reformist President Masoud Pezeshkian was sworn in and began his term, the rate was 584,000 to $1. Trump unilaterally withdrew America from the accord in 2018, sparking years of tensions between the countries that persist today. Iran’s economy has struggled for years under crippling international sanctions over its rapidly advancing nuclear program, which now enriches uranium at near weapons-grade levels. Pezeshkian, elected after a helicopter crash killed hard-line President Ebrahim Raisi in May, came to power on a promise to reach a deal to ease Western sanctions. Tensions still remain high between the nations, 45 years after the 1979 U.S. Embassy takeover and the 444-day hostage crisis that followed. Before the revolution, the rial traded at 70 for $1. Iran remains deeply involved in the Middle East conflicts that have roiled the region, with its allies battered — including the militant groups and fighters of its self-described “axis of resistance,” such as Palestinian Hamas, Lebanon’s Hezbollah and Yemen’s Houthi rebels.

Gas supply will remain suspended for 8 hours from 2 pm to 10 pm on Thursday (March 02, 2023) for all kinds of consumers in different areas in the capital due to emergency tie-up works of pipelines. The areas include Mintoo Road, Eskaton, Pirbagh, Habibullah Road, Karwan Bazar, Old Elephant Road and areas adjacent to PG Hospital, Birdem Hospital, Dhaka Club, Holy Family Hospital, Dhaka University and Buet, said the Titas Gas Transmission and Distribution Company Limited. Also Read: GE offers high efficiency gas turbine tech to ease nagging energy crisis Regretting for the temporary inconveniences the Titas Gas authorities said the consumers  in other adjacent areas may experience low pressure in gas supply.

GE Gas Power, a world leader in natural gas power technology, services and solutions, is focused to generate electricity that is reliable, affordable and sustainable for the people in Bangladesh, said a senior official of the company.