United News of Bangladesh

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.

Bangladesh Prime Minister’s Office (PMO) has been collecting necessary information and data from two divisions and their associate bodies in the power and energy sector to make some policy decisions on power, gas, and petroleum prices. According to official sources, the PMO will soon reconvene a recently postponed meeting to discuss the issues where dealing with a tough possible situation in the coming summer might top the agenda. They said that the PMO had convened a meeting on December 15 to discuss the overall situation in the power and energy sector. “But at the last moment, the meeting was postponed”, said a top official in the Power Division adding that a new principal secretary to the Prime Minister and also a new cabinet secretary took office on the day for which the meeting was postponed. Read: Dhaka seeks Riyadh's support to meet energy needs “We hope the suspended meeting will be called soon where the two top bureaucrats may attend”, he said.      The issue of power tariff enhancement in the retail consumer level will get a top priority in the proposed meeting”, said a senior official of the largest organisation in the power sector, preferring not to be quoted because of its sensitivity. Power Cell director general Mohammad Hossain said that his organisation has also provided necessary data to the PMO and the Power Division as per their requirements. Official sources said the PMO is collecting data and information against the backdrop of the government’s plan to increase power tariff at retail consumer level to cover a huge flaw in the power sector’s revenue collection. Read: Ensuring access to electricity at an affordable cost is govt’s prime goal: PM’s Energy Advisor Because of the purchase of electricity from the private sector at higher rates and sell it to consumers at lower rates, the loss of Bangladesh Power Development Board (BPDB), state-owned principal organisation, was estimated to be Tk 48,000 crore in the current fiscal year 2022-23. The officials said the recent hike of about 20 percent in bulk power tariff, effective from December 1, might reduce the loss by only Tk 5000 crore. To cover the remaining loss, all the six distribution companies were asked by the Power Division to submit their respective proposals to the Bangladesh Energy Regulatory Commission (BERC). They already submitted a proposal to the BERC to increase the retail power tariff by about 20 percent. Read: Cabinet approves amendment to let govt decide energy price without BERC But the BERC needs to follow a public hearing to take any decision on the issue and the whole process needs about 90 days while the government is in urgent need to increase the retail power tariff. In such a situation, the Cabinet on November28 approved an amendment to BERC Ordinance 2022 to empower the government to set fuel tariff on its own under special circumstances without waiting for the commission’s public hearing and decision. Now the BERC is in a dilemma whether it will move to hold a public hearing to adjust retail power tariff or the government on its own takes decision on retail power tariff enhancement. Officials said the PMO office wants to learn about the entire situation so that it can give an instruction to the Power Division to take the future decision. Read More: Mitsubishi Power to continue support Bangladesh power industry amid growing energy need The officials also said that a directive is also expected from the PMO meeting to tackle the situation in the next summer, which normally starts from February 15 with an extra load in power supply. Normally an extra load of about 3000 MW in power supply is assumed to be coming from the agriculture irrigation sector in the coming summer, which may continue until May next year. The fasting month of Ramada, which will begin from the first week of April next year will also put another load of 3000 MW. But due to the primary fuel crisis, the government is under pressure to increase the power generation and a big deficit is apprehended in the coming year, officials said. Read More: Europe can’t put its energy needs first while requesting India to act otherwise: Jaishankar All these issues are expected to be discussed in the PMO meeting where the State Minister and the PM’s energy advisor are likely to be present, they said. Prime Minister Sheikh Hasina at a meeting recently said that the government supplies electricity to everyone at subsidised prices though the production cost is much higher. But it will not be possible to provide electricity at lower prices considering the global recession, she said. "The actual cost will have to be paid," she said, adding that the price of gas has increased in the international market. Read More: Bulk power tariff hike won’t affect retail consumers right now: Nasrul Hamid "Everyone, including businessmen in the country, will have to exercise austerity and will have to be ready to pay the money spent on the (increased) price of gas and transport cost. Otherwise, we will not be able to provide electricity. If you want (electricity), you will have to pay the real prices," she added. The PM said costs of electricity, gas, water, and fuel can be reduced by exercising austerity. Currently, the installed power generation capacity of Bangladesh is over 25,000 MW while the generation was limited to 12,000 MW because of the primary fuel crisis.

Gas supply will remain suspended for 11 hours from 1 pm to 12 am (mid night) in different areas of Dhaka on Wednesday (December 07, 2022). According to Titas Gas Transmission and Distribution Company Limited, the areas where there will be no gas supply due to emergency works in the pipeline include Tejgaon, Mohakhali, Gulshan, Banani, Natunbazar, Badda, and Khilbaritek. Read: Gas reserve found in abandoned well of Beanibazar The adjoining areas will experience low pressure in gas supply, said Titas Gas regretting the temporary inconvenience of the consumers during the period.