The ongoing power and gas crisis in Bangladesh is unlikely to be resolved quickly, stated Finance and Planning Minister Amir Khasru Mahmud Chowdhury.
He noted that a permanent solution within six to twelve months is impossible and that stabilizing the situation will take at least two years.
He made these remarks as the chief guest at an event organized by the American Chamber of Commerce in Bangladesh (AmCham) at Hotel InterContinental in the capital on Sunday.
"An economy cannot progress without gas and electricity," the minister said, emphasizing that the government is taking all possible steps to address the crisis. However, long-standing structural issues in the power and energy sector cannot be fixed overnight.
"The resolution will not happen in six months or a year. It will take a minimum of two years," he reiterated.
Identifying the prolonged lack of gas exploration as a major cause, Khasru shared that new gas exploration initiatives are now underway, alongside active efforts in solar and coal-based power generation.
To boost supply, the government is planning onshore gas storage facilities alongside floating liquefied natural gas (LNG) terminals. The minister noted that implementing these projects will take time.
"Constructing a floating LNG terminal alone takes about one and a half to two years. Consequently, resolving the gas crisis permanently before then is difficult," he explained.
He also announced that an integrated energy policy will be published within the next few weeks to clarify future energy demands and prioritize generation sources.
"We are determining the exact requirements for each fuel type. The policy will be published in a few weeks so people know what to expect. We must remain cautious over the next two years," he added.
The minister clarified that while the country possesses adequate power generation capacity, the transmission network remains a significant bottleneck.
The government is currently finalizing the national energy mix, considering renewable energy, gas, and coal-based power. A visible transformation in the sector will be seen in due course.
Addressing the banking sector, Khasru revealed a severe capital deficit that the government cannot bridge alone, alongside high levels of non-performing loans (NPLs).
He emphasized the need to develop alternative financing channels, stating that bank-reliant financing is insufficient for economic growth and that capital markets must be strengthened.
Regarding revenue reforms, the government plans to shift tax policymaking away from bureaucratic structures to an independent body of experts.
As part of this initiative, the National Board of Revenue (NBR) will be split into two divisions: one responsible for tax policy formulation and the other for execution and revenue collection.
"The policy body will consist of experts, not bureaucrats," he stressed. He also outlined plans to fully automate the tax system for real-time online filing and refunds, along with a flat-rate tax scheme for small businesses supported by a new database.
Acknowledging that administrative complexity and over-regulation have historically hindered business growth, the minister affirmed the government’s 100% commitment to implementing deregulation despite the challenges.
AmCham President Syed Mohammad Kamal, who chaired the event, stated that AmCham aims not only to identify challenges but to participate actively in solutions to restore trade and investment confidence.
