Solving energy crisis to take two years

It will take two years to resolve the ongoing gas and power crisis, said Finance and Planning Minister Amir Khosru Mahmud Chowdhury.

“It will not be solved within six months or a year. It will take two years to overcome the problems. Constructing a new floating LNG terminal alone requires at least one and a half to two years,” he said on Sunday (August 16).

The minister made the remarks while addressing a seminar organised by the American Chamber of Commerce in Bangladesh (AmCham) at Hotel InterContinental in Dhaka. AmCham President Syed Mohammad Kamal presided over the event.

Amir Khosru said the economy cannot progress without adequate supplies of gas and electricity.

“We are taking all possible steps as a quick response. Gas exploration was suspended for a long time, but it has now resumed. Besides, we are working on solar and coal-based power,” he said.

A new energy policy will be introduced within the next few weeks, the minister said, adding that the government is assessing how much energy the country needs and which sources should be prioritised.

“The necessary steps to be taken by the government will become clear after the energy policy is published,” he said.

The finance minister urged people to remain cautious during the two-year period of energy shortages.

On revenue collection, Amir Khosru said the government has taken an initiative to separate the policy and implementation wings of the National Board of Revenue (NBR).

At the same time, efforts are underway to expand the revenue collection base. The government is also planning to introduce a fixed tax rate for small businesses, while work is ongoing to build the necessary databases to facilitate the process.

Speaking about the stock market, the minister said measures had been taken after the government received warnings about the market situation.

He said more companies need to be listed on the stock exchanges to support the country’s economy.

The finance minister also expressed concern over the banking sector, saying the capital shortfall had reached a critical stage.

“The deficit is so high that it is not possible for the government alone to fill it,” he said, stressing the need to create alternative sources of finance.

He also noted that the volume of default loans remained high, underscoring the need for alternative financing mechanisms.