Bangladesh’s ongoing gas and electricity crisis may take at least two years to resolve, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said on Sunday, warning that the country would need to remain cautious over the next two years.
“The problems with gas and electricity cannot be solved in six months or a year. It will take at least two years,” he said.
The minister was speaking at a seminar organised by the American Chamber of Commerce in Bangladesh (AmCham) at a city hotel. The seminar focused on restoring investor confidence through policy reforms and effective implementation.
Khosru said the construction of a floating LNG terminal alone could take one-and-a-half to two years, making an immediate resolution of the energy crisis difficult.
“An economy cannot move forward without gas and electricity,” he said, adding that the government was taking steps to address the problems as quickly as possible.
He said gas exploration, which had remained neglected for a long time, was now being pursued. The government was also working on solar power and coal while assessing the country’s future energy requirements.
An energy policy will be published within the next few weeks, he said, adding that it would provide greater clarity on the government’s plans.
“We have to remain cautious over the next two years,” Khosru said.
Revenue collection
On revenue mobilisation, the finance minister said the government planned to separate policy-making from implementation in the tax administration.
“We are trying to expand the revenue base,” he said, adding that a simplified fixed-rate tax system would be introduced for small businesses.
A database is being developed to support the initiative, he said.
Banking sector under strain
Khosru said the banking sector was facing a severe capital shortfall that was too large for the government to cover.
The volume of non-performing loans was also very high, he said, stressing the need for alternative sources of financing.
His remarks come as the government faces mounting pressure to restore stability in the banking sector and improve access to finance for businesses.
More listed companies needed
On the stock market, Khosru said the government had received warning signals from the market and had subsequently taken steps to bring changes.
“We need more listed companies,” he said.
Business leaders at the seminar raised various concerns and questions, which the minister addressed.
AmCham President Syed Mohammad Kamal said the organisation wanted to be part of the solution rather than merely identify challenges.
“We want to be part of the solution, not just identify challenges,” he said, adding that the seminar was organised to help rebuild confidence among businesses and investors.
He said AmCham would organise more such initiatives in the future.