Exploration Must Proceed To Reduce Import Dependence

Bangladesh cannot make its power and energy sector entirely import-free. However, there are opportunities to gradually reduce import dependence by expanding exploration, extraction, and utilization of domestic gas and coal. At the same time, curbing corruption and mismanagement at every stage—from production to supply to consumption—must be given the highest priority to control subsidies and prevent further price hikes. Ensuring efficient use of electricity and energy at the consumer level is equally essential.

- Mollah Amzad Hossain

These were the observations of Dr. Masrur Riaz, Founder and Chairman of Policy Exchange Bangladesh, in a conversation with Energy & Power Editor Mollah Amzad Hossain.

Bangladesh is facing the most severe energy crisis in its history. The interim government has continued day-to-day functions, but the real challenge of overcoming the crisis will fall on the party or coalition that comes to power after the upcoming election. What preparations should political parties make before the election?

Energy and power cannot be viewed only as infrastructure—it is the driving force of the economy. Production, employment, and exports are all directly tied to it. Bangladesh is now a country of 190 million people, 68 percent of whom are of working age. Labor-intensive industrialization is therefore critical. Agriculture and the service sector alone cannot absorb this workforce. Yet every sector—industry, services, and agriculture—depends on energy. For the economy to move forward, and even to simply keep industry, services, and agriculture running, there is no alternative to a reliable, quality power and energy supply. That means the foremost challenge for the next government will be ensuring energy and electricity supply. Political parties must finalize their strategies and preparations now. Their priority should be to further stabilize the economy, accelerate growth, and expand production, employment, and income. Among the key enablers of that is energy. Therefore, parties must develop strategies and action plans for this challenge before the election.

Many industries are reporting 25–40 percent production disruption due to inadequate gas supply and unreliable electricity. Meanwhile, Bangladesh is at the threshold of LDC graduation, though there are calls to delay it. Once tariff privileges are withdrawn, industries will face new challenges. What is the way forward?