The country鈥檚 business leaders strongly criticised the government鈥檚 proposal to raise gas prices by 150 per cent for new industries and industrial expansion, calling it a discriminatory move that could deter future investors and make Bangladesh less attractive for business.
They warned that if implemented, the steep price hike would hinder industrialisation, erode the competitiveness of existing industries, disrupt exports and turn the country鈥檚 demographic dividend into a liability due to a lack of job creation.
They made the remarks at a seminar titled 鈥楶olicy Considerations in Energy Affordability and Impact on Industrial Competitiveness,鈥� held at Hotel Intercontinental in the capital on Sunday.
The event was jointly organised by the Policy Exchange Bangladesh and Economic Reporters Forum.
Criticising the government鈥檚 proposal, Bangladesh Chamber of Industries president Anwar-ul Alam Chowdhury Parvez said, 鈥楾he government is planning to increase gas prices by 150 per cent for new industries and 50 per cent for expanding industries. Thanks to the government for making such a decision 鈥� we do not need any more industries.鈥�
Parvez also said that if the country鈥檚 economy was to be sustained, the price of gas needed to be reduced from its current level.
He mentioned that cheap gas had contributed to the establishment of many factories in the country.
Foreign Investors鈥� Chamber of Commerce and Industry president Zaved Akhter said that the government needed to understand that investors had choices and that Bangladesh was not the only investment destination in the world.
Referring to the proposal to increase gas prices, he said it seemed like a plan had been made to cripple the economy and industry.
鈥楴o one is desperate to invest in Bangladesh. We need to understand this harsh reality: Bangladesh is just one option among many investment destinations,鈥� Zaved said.
The European Union Chamber of Commerce in Bangladesh president Nuria Lopez said that the main issue with the new regulation, particularly regarding energy pricing, was discrimination, highlighting the unfair treatment between existing investors and new ones.
鈥榃ho would want to invest in Bangladesh under these conditions? No one would want to come if they understand that those who were here before are given preferential treatment that newcomers don鈥檛 receive,鈥� she said.
She urged the government to engage industries and investors before major energy policy decisions, conduct impact assessments, and foster an open dialogue for sustainable solutions.
Policy Exchange Bangladesh chairman Masrur Riaz said that doubling gas prices in the current challenging times would raise production costs in the manufacturing sector, reducing competitiveness.
This would negatively impact new investments and increase import dependence in sectors such as cement, steel, and ceramics.
Masrur warned that higher gas prices could lead to the closure of many industries, resulting in bad debts and rising unemployment, which would turn the country鈥檚 demographic dividend into a liability.
Bangladesh Textile Mills Association president Shawkat Aziz Russell said that instead of increase, research needed to be done on how to reduce the current price of gas.
He alleged that people, close to the previous government, were restless, buying gas from the spot market to earn commissions, and that they continue to earn commissions still while residing abroad.
BTMA president said that Bangladesh Bank was providing money to some banks, as those have been looted, but while the focus was on sustaining the banks, there was no attention given to sustaining the industry.
Due to the depreciation of taka against the dollar, working capital of the businesses has decreased by half, Russel said.
He also said that despite having many sugar mills in the country, sugar was being imported from Pakistan, which was shameful and the practice would not create employment.
Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said that the crisis has worsened since the hike in gas price two years ago, and the biggest challenge to industrialization now is the gas crisis.
He said that the public hearing on gas prices, scheduled by the Bangladesh Energy Regulatory Commission for February 26, should not be a mere formality.
Hatem urged the government to delay Bangladesh鈥檚 graduation from least developed to developing country status for a few years, saying that the country is not yet in a position to graduate due to the previous government鈥檚 preparation of fabricated data to present inflated economic growth.
BERC chairman Jalal Ahmed, Bangladesh University of Engineering and Technology professor Ijaz Hossain and ERF president Doulot Akter Mala, among others, spoke at the event.
