Energy sector moves to centre of economy: Finance minister

Finance and Planning Minister Amir Khasru Mahmud Chowdhury has said the energy sector has moved to the centre of Bangladesh’s economy amid global economic uncertainty and tensions in the Middle East, stressing the need to expand energy supplies and accelerate economic reforms. 

Speaking at a discussion titled “Sustainable Power and Energy: Driving Investment in Bangladesh”, organised by the Foreign Investors’ Chamber of Commerce and Industry (FICCI) at Hotel InterContinental in Dhaka on Monday (October 19), he said the government was working to address inherited revenue shortfalls, banking sector instability and capital flight.

The minister said the government was offering tax incentives to promote solar power, encouraging rooftop installations at homes and industrial facilities, and introducing measures to purchase surplus electricity at incentivised rates.

To boost domestic gas supplies, the government is accelerating onshore and offshore exploration and plans to drill 150 wells through the Bangladesh Petroleum Exploration and Production Company (BAPEX), with equipment procurement already approved.

He also outlined plans to establish three to four floating storage and regasification units (FSRUs), involving private investors from South Korea, China and the United States. A potential energy terminal site near Khulna has also been identified alongside Matarbari to facilitate the handling of large vessels carrying oil and liquefied natural gas (LNG).

On economic reforms, Amir Khasru said the government was separating policy formulation from implementation at the National Board of Revenue (NBR), while working to restructure the banking sector and capital market and reduce the cost of doing business.

He also said initiatives were underway to establish a dedicated equity fund for Bangladesh in Hong Kong and attract international investment into the country’s capital market and bond sector.