Energy Crisis Deepens Investment Woes in Bangladesh

It is well understood that Bangladesh's uncertain energy security has severely impacted both foreign direct investment (FDI) and domestic investment. Chronic gas shortages mean a large portion of gas-based power plants cannot operate for most of the year. Only two of the seven state-owned fertilizer plants remain functional. Many small and medium industries have shut down, while most large industries are struggling to keep operations running.

- Engr. Khondkar Abdus Saleque

This crisis is largely the result of the absence of a long-term strategic plan, poor coordination among key stakeholders, the neglect of skilled professionals in the energy and power sectors, and a heavily politicized and corruption-prone management system. Over the past year, the interim government has failed to grasp the full scope and complexity of the crisis. While some of their actions have brought marginal improvements, they have not addressed the root causes. As a result, the energy and power sectors continue to function in a "business-as-usual" mode.

A newly elected democratic government is expected to take office in early 2026. For it, the energy and power sectors must be among the highest priorities. Bangladesh urgently needs a reliable and uninterrupted supply of electricity and gas to drive economic growth. Without consistent, transparent policies, sustained inflows of both foreign and local investment will remain elusive. If the current energy crisis continues, the country will face worsening unemployment and dwindling export earnings. There are no magical solutions-only sound strategies and vision. Let us hope the political leadership has both.

Present Situation of Power and Energy Supply Chain

Over the past 25 years, Bangladesh's power and energy sector has expanded significantly, but this growth did not follow an integrated and comprehensive master plan. Although the government developed two Power System Master Plans (PSMP 2010 and 2018) with JICA's support, and more recently the Integrated Energy and Power Master Plan (IEPMP 2023), none of these plans were seriously implemented. Inadequate data and flawed assumptions further weakened the planning process.