Finance Minister Amir Khosru Mahmud Chowdhury on Friday said Bangladesh may need to provide an additional Tk 36,000 crore in subsidies for electricity and energy in the current fiscal year, as soaring global fuel prices triggered by geopolitical tensions significantly raise import costs.
Speaking in Parliament, the minister said the government has decided not to increase domestic energy prices despite the sharp rise in international fuel and liquefied natural gas (LNG) prices in order to shield citizens from further economic hardship.
“The people have placed their trust in us, and our responsibility is to build an advancing, inclusive and sustainable economy for Bangladesh,” he told the House during a session presided over by Speaker Hafiz Uddin Ahmad.
Khosru said the government assumed office amid significant economic challenges, including high inflation, pressure on the external sector, weak investment growth and institutional governance issues.
Shortly after the new administration took office, fresh global uncertainty emerged due to the US–Israel war involving Iran, which disrupted global energy markets, supply chains and trade flows, he said.
According to the minister, international prices of fuel oil and LNG have more than doubled, sharply increasing Bangladesh’s import costs.
Because of this, the government will likely need to allocate around Tk 36,000 crore more than the originally budgeted amount for energy subsidies in the current fiscal year.
He warned that the additional expenditure could increase the budget deficit and put pressure on foreign exchange reserves, as Bangladesh may require nearly $3 billion in additional payments for energy imports.
To cope with the situation, the government has already taken steps to encourage energy conservation and public austerity in electricity use, he said.
The government is also seeking additional budgetary support from development partners to help maintain balance-of-payments stability and ease fiscal pressure.
Khosru acknowledged that Bangladesh, being an import-dependent economy, cannot remain insulated from global geopolitical developments. However, he said the government remains confident that prudent economic management and policy reforms will help navigate the challenges.
Looking ahead, the finance minister reiterated the government’s long-term goal of transforming Bangladesh into a trillion-dollar economy by 2034.
