Commerce Minister Khandaker Abdul Moktadir has identified the ongoing energy crisis and persistently high interest rates as the two biggest challenges facing Bangladesh’s industrial sector, warning that both are stalling new investment and straining existing businesses.
Speaking at the 46th meeting of the advisory committee of the National Board of Revenue, organised jointly with the Federation of Bangladesh Chambers of Commerce and Industry at Pan Pacific Sonargaon Dhaka on Wednesday, the minister said many industries are currently passing through a difficult phase.
“Energy shortages, high borrowing costs and a slowdown in new investments have emerged as major challenges. At this moment, sustaining existing industries is just as important as attracting new investments,” he said.
The minister stressed that the government will take into account private sector proposals in the upcoming budget, underscoring the need to revitalise the economy not only for economic stability but also for overall development.
Later in the day, speaking at the inauguration of the Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKGE Expo 2026) at the International Convention City Bashundhara, Moktadir said the government is working to bring down lending rates from the current double-digit levels to make them investment-friendly.
He noted that industries such as textiles cannot survive with borrowing costs of 13–14%, describing such rates as unsustainable for low-margin, labour-intensive sectors. “Reducing interest rates to a level that supports both new investments and ongoing businesses is a priority,” he said.
Highlighting the severity of the energy crisis, the minister said the country currently requires around 4,300 million cubic feet of gas per day, while domestic production ranges between 1,700 and 2,300 mmcfd, leaving a significant deficit.
He acknowledged that the situation cannot be resolved overnight, particularly due to limited capacity to import and regasify liquefied natural gas (LNG). Bangladesh currently operates two floating storage and regasification units (FSRUs), with a combined effective capacity of around 935–950 mmcfd.
The government, he said, is planning to expand LNG import capacity by adding more FSRUs to boost gas supply in the coming years and support gas-based industries.
Addressing structural bottlenecks, the minister also pointed to lengthy bureaucratic processes, noting that obtaining 25–26 licences and clearances for a new business can take months or even years.
He said the government plans to introduce a system of instant provisional licences, allowing businesses to start operations immediately while final approvals are processed.
He added that steps are also being taken to simplify bond licence renewal procedures to make them more business-friendly.
Emphasising the role of industry, particularly the ready-made garment sector, Moktadir said private sector growth remains the key driver of the economy, and removing barriers to business will be central to the government’s strategy going forward.