The country's businesses are facing tough time with deepening energy shortage that is disrupting industrial output, driving up costs, and injecting fresh uncertainty into exports and investment.
Economists and businesses say the mounting energy crunch is pushing up production expenses across major sectors, including garments, textiles, steel, cement, ceramics, plastics, and pharmaceuticals. Export competitiveness is at risk, as higher costs may drive international buyers toward markets like Vietnam, India, and Cambodia.
The situation has been aggravated due to absence of coordinated actions of trade bodies where administrators- not elected leaders are in seats. This vacuum has weakened policy dialogue between the government and the private sector.
Business leaders warn that many factories are unable to operate at full capacity due to gas and electricity shortages. To stay competitive in global markets, entrepreneurs are absorbing higher production costs-raising concerns over long-term sustainability.
"At a time when coordinated action is critical, the country's apex trade body, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), is struggling to play an effective role in the absence of elected leadership", said a leading businessman in the country's private sector.
This remark was also echoed by Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh, recently who said that global conditions have made business operations increasingly difficult, with energy shortages emerging as the most pressing challenge. A functional FBCCI, he noted, could help strengthen coordination with the government.
Sakif Shamim, managing director of Labaid Group and chairperson of the Centre for Strategic and Economic Research (CSER), said the crisis is eroding both production efficiency and investor confidence. "A slowdown in investment will ultimately affect employment," he warned, urging immediate policy support.
As the government prepares the national budget for FY2026-27, expectations from the business community are rising.
Stakeholders are calling for measures to stabilise the energy sector, ease production costs, and support export-oriented industries. They are also urging stronger institutional backing for trade bodies, including financial support to the FBCCI and regional chambers.
Economist Sayema Haque Bidisha of the University of Dhaka stressed the need for close coordination between the government and private sector to navigate ongoing challenges. She highlighted the importance of addressing energy shortages, structural weaknesses, and market uncertainty through aligned policies.
Analysts say the economy is currently under pressure from three key factors: rising import costs, strain on foreign exchange reserves and the US dollar, and persistent inflation. Together, these are dampening private investment, delaying industrial expansion, and increasing borrowing costs.
Small and Medium Enterprises (SMEs) are particularly exposed. With limited capacity to absorb rising costs, many are facing liquidity stress amid high interest rates, falling sales, and unreliable energy supply.
The impact is spilling into agriculture as well. Diesel shortages are disrupting irrigation during the crucial boro season, raising concerns over crop output and potential food inflation.
Experts argue that the upcoming budget must adopt a counter-cyclical approach-focusing on sustaining investment, protecting jobs, and restoring confidence. Priorities should include tax rationalisation, low-interest financing for SMEs, energy security, and cost reduction measures.
They also emphasise the need for stronger energy diplomacy and diversification of fuel sources to reduce reliance on the Middle East, warning that prolonged instability could further inflate fuel, shipping, and insurance costs.
Business leaders say the absence of a strong, representative FBCCI leadership remains a key concern. An elected and proactive body, they argue, is essential to present sector-specific recommendations based on ground realities.
Without swift and coordinated action, analysts caution, the crisis could leave lasting scars on growth, investment, and employment-making the upcoming budget a crucial test of economic resilience.
