Bangladesh pushes to secure $2.5 billion loan amid energy crisis
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Bangladesh – which imports 95 per cent of its oil and gas needs – has not raised electricity and fuel prices despite the global surge.
PHOTO: AFP
DHAKA – Bangladesh is pushing to secure loans of around US$2 billion (S$2.56 billion) from multilateral agencies for tackling energy security concerns amid soaring global fuel prices driven by the Middle East war.
The government has already taken several measures to curb fuel consumption, including halting production at most fertiliser factories.
The government has now adopted a three-pronged approach to ensure sustainable energy supply, the Bangladesh prime minister’s finance and planning adviser Rashed Al Titumir said on March 21.
“Part of that is securing loans,” Professor Titumir, who also teaches economics at the University of Dhaka, told AFP.
“The International Monetary Fund has committed US$1.3 billion, while the Asian Development Bank has pledged US$500 million as budget support,” he said, adding the government was pursuing the loans for early disbursement.
The government may also approach the World Bank.
“As we want to keep foreign currency reserves intact, we have limited options other than seeking loans,” Prof Al Titumir said.
The Bangladesh government is also exploring alternatives for sourcing energy from “North America, South America or Africa”.
“We are exploring all available options for alternative energy sources,” Prof Al Titumir added.
Bangladesh – which imports 95 per cent of its oil and gas needs – has not raised electricity and fuel prices despite the global surge.
Most crude fuel is sourced from Saudi Arabia and the United Arab Emirates, while around 35 per cent of gas supply also comes from the Middle East.
An attack on a site at Qatar’s Ras Laffan liquefied natural gas (LNG) hub could disrupt gas supply, given the country’s reliance on the facility.
Since the outbreak of the Middle East war, the Bangladeshi authorities have taken several measures to curb fuel consumption.
These include setting limits on fuel purchases, halting production at most fertiliser factories, deploying the police to patrol filling stations and using the navy to escort LNG shipments. AFP
