Finance Minister Amir Khasru Mahmud Chowdhury on Tuesday told Parliament that Bangladesh requires an additional subsidy of approximately Tk 42,600 crore for four sectors �"oil, gas, electricity, and fertiliser�" in the outgoing fiscal year of 2025-2026 due to the conflicts in the Middle East.
“Recent conflicts in the Middle East, including Iran, and the instability in the global energy market have put additional pressure on the (Bangladesh) government's subsidy spending in the oil, gas, electricity, and fertiliser sectors. According to preliminary estimates, the additional subsidy requirement in these four sectors alone is about Tk 42,600 crore by June in the 2025-26 Fiscal Year,” he said, according to UNB report.
The finance minister said this, while responding to a starred question from ruling party lawmaker SM Jahangir Hossain (Dhaka-18) who asked to know whether Bangladesh incurred any economical or business loss due to the recent war in the middle east.
Of the additional amount of the subsidy, some Tk 10,258 crore may be required for oil, Tk 11,170 crore for gas, Tk 19,821 crore for electricity and Tk 1,350 crore for fertiliser, he said.
Amir Khasru said the Middle East conflict has posed both immediate and potential risks to the Bangladesh economy. “So far, the impact has been mainly visible in the areas of fuel, fertiliser, import costs, transport costs, inflation, foreign exchange management, remittances and foreign employment,” he said.
He said the increased prices of fuel oil, LNG and fertilisers in the international market have put pressure on import costs and production costs. The energy price-hike could increase costs in the electricity, transport, agriculture and industrial sectors, which can indirectly affect market prices and inflation.
As the Middle East is an important destination for Bangladeshi expatriate workers, the prolonged instability can also pose risks to foreign employment and remittance inflows, he said.
Noting that the government is closely monitoring the situation, the finance minister said a number of steps are being taken to address the current situation such as sources diversification for energy imports, exploring local gas, maintaining normal supply of essential goods, remaining cautious over foreign exchange management, and exploring alternative labour markets.
Finance Minister Amir Khasru Mahmud Chowdhury told parliament that the government has been implementing a range of refinance schemes to promote youth entrepreneurship and tackle unemployment through soft-term and low-interest financing.
Responding to a starred question from ruling party lawmaker Mohammad Abdul Malek (Sylhet-3) during the question-answer session, the minister said there is currently no interest-free loan scheme for young entrepreneurs operated by Bangladesh Bank.
Khasru said Bangladesh Bank has expanded its Cottage, Micro and Small Enterprise (CMSE) New Entrepreneurs Refinance Scheme from Tk 100 crore to Tk 500 crore using its own funds.
Under the scheme, new entrepreneurs can obtain loans of up to Tk 10 lakh without collateral at a maximum interest rate of 7 percent, while loans of up to Tk 35 lakh are available with collateral.
To further support startups, a Tk 500 crore Start-up Fund has been introduced, allowing entrepreneurs to access loans at a reduced interest rate of 4 percent, he said.
The minister also noted that Bangladesh Bank in partnership with 39 scheduled banks has established the Bangladesh Start-up Investment Company PLC to provide equity financing support to startup ventures.
Highlighting skills development initiatives, Khasru said aspiring entrepreneurs are receiving month-long entrepreneurship development training under the Skills for Industry Competitiveness and Innovation Program (SICIP), implemented by Bangladesh Bank’s PIU-SICIP.
“Through this programme, aspiring entrepreneurs receive 100-hour entrepreneurship development training in different districts,” he said.
The training is provided free of charge, and participants who successfully complete the course receive a stipend of Tk 5,000. Graduates are also given priority in accessing loan facilities.
Replying to a supplementary question from lawmaker Md. Mahbubul Alam(Kurigram-2), the finance minister said educated unemployment remains a major national challenge.
He observed that a large proportion of unemployed young people in Bangladesh come from the general education stream rather than technical or vocational backgrounds.
The government is therefore prioritising skills development programmes and expanding vocational education nationwide, he said.
Under the initiative, training institutions are being strengthened to provide job-oriented education, while certification systems are being developed to enhance employment opportunities both at home and abroad.
Khasru said the government’s focus is not only on training but also on ensuring employability through practical skills development, enabling young people to secure jobs in domestic and international markets.
