Industries and businesses facing persistent energy shortages are expected to see relief by the coming winter, according to Dr Rashed Al Mahmud Titumir, the Prime Minister’s Adviser for Finance and Planning. He said the government expects visible improvements in the energy situation before winter and aims to ensure uninterrupted energy security by 2029 to support the country’s expanding economy.
Speaking to journalists at the Secretariat on Thursday, the adviser outlined the government’s plans to address the energy crisis while also discussing inflation, a new pay structure for public servants, investment, employment generation, revenue mobilisation and broader economic reforms.
Dr Titumir said inadequate fuel reserves in the past had intensified the impact of energy shortages. The government is therefore considering alternative transportation routes and new sources of energy to strengthen supply resilience.
A new standard for maintaining strategic reserves of fuel and electricity-generation inputs is also being developed. Under the proposed approach, Bangladesh would maintain fuel reserves sufficient for at least three months. Similar arrangements are being considered to ensure that power plants have enough raw materials to sustain generation for three months.
The government is also preparing to expand domestic exploration for oil and gas. According to the adviser, a tender for offshore exploration in Bangladesh’s maritime territory is expected to be invited in November this year. Bangladesh Petroleum Exploration and Production Company will be involved in the process. At the same time, initiatives are being considered to make more effective use of the country’s coal resources.
Renewable energy is another part of the government’s long-term energy strategy. Dr Titumir said the net-metering system was being implemented to encourage people to become electricity producers as well as consumers. So far, 36,000 applications have been received under the initiative. The government has set a target of obtaining 5,000 megawatts of electricity from solar power by November 2029.
The adviser also provided an update on the proposed new pay structure for government employees. The report of the Pay Service Commission and the pay committee for the armed forces has been reviewed by the secretaries’ committee, while work by the pay committee for the judiciary has also begun. The final announcement and implementation date will be determined at a Cabinet meeting.
Financing the new pay structure would require higher domestic revenue collection, with borrowing also considered if necessary, Dr Titumir said. The government is seeking to balance additional expenditure with efforts to strengthen public finances.
On inflation, he said the government was pursuing a coordinated approach involving fiscal and monetary policy, production, energy supply and social protection. Rather than relying on a single policy instrument, the authorities intend to address the different pressures affecting economic stability at the same time.
Social protection is also being expanded. During the current financial year, 4.1 million people are being brought under the Family Card programme on what the government describes as a scientific basis for identifying beneficiaries. The initiative could reduce poverty by up to five percentage points, according to the adviser. In addition, 1.2 million farmers have received support through the waiver of loans of up to Tk10,000.
The government is also seeking to revive long-closed factories and restore investor confidence. Dr Titumir said changes had been made to the bonded warehouse policy and that a five-year plan for the tax system had been introduced as part of efforts to create greater predictability for investors.
Steps are also being taken to reduce bureaucratic delays by setting specific deadlines for approvals. The government hopes that a clearer administrative process will help investors make decisions with greater certainty while reducing prolonged procedural complications.
For the revival of closed factories, tenders are being processed for their transfer by December following the issuance of relevant laws and ordinances. New economic zones and export processing zones in Chattogram and Mongla are targeted to begin production within the next 18 months.
The government is also planning to strengthen financing for agriculture-based industries in the northern region. In another development linked to industrial standards, a delegation from the United States is expected to visit Bangladesh to assess standards in the pharmaceutical sector.
The government’s broader economic strategy, as outlined by the adviser, links energy security with industrial production, investment, employment, social protection and fiscal stability. The immediate priority is to ease the energy constraints affecting businesses ahead of winter, while the longer-term objective is to build sufficient reserves, expand domestic energy exploration and increase renewable generation so that Bangladesh can secure a more reliable energy supply by 2029.
