Business Leaders Demand Increased Gas Production for Stable Economy

Dhaka, August 21, 2025 – Business leaders in Bangladesh have emphasized the critical need for energy security to ensure a robust and stable economy, highlighting its importance not only for economic growth but also for social and political stability. They argue that reliance on domestic energy resources or investment in renewable energy sources can reduce dependence on imports, thereby strengthening energy security.

Industries such as textiles, cement, fertilizers, and other heavy sectors require uninterrupted supplies of electricity and gas to operate efficiently. Disruptions in energy supply lead to production halts, adversely affecting export earnings, employment, and overall economic growth. Moreover, foreign investors are less likely to invest in Bangladesh without reliable energy and power assurances, resulting in reduced Foreign Direct Investment (FDI) and negative impacts on the economy. Achieving energy self-sufficiency, though a costly and long-term endeavor, is deemed essential for economic independence and protection from global market volatility, according to industry stakeholders.

In recent discussions with the media on energy security, economic stability, bank interest rates, and inflation, prominent business leaders—including Mahbubur Rahman, President of the International Chamber of Commerce and Industry Bangladesh (ICCIB), Mahmud Hasan Khan Babu, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and Sakif Shamim, a business leader and Managing Director of LabAid Cancer Hospital & Super Specialty Center, who is also a candidate for Vice President in the upcoming FBCCI election—stressed the urgency of achieving energy self-sufficiency. The leaders underscored that energy self-sufficiency ensures a country can meet its energy demands while minimizing reliance on imported fuels. This reduces the risk of energy crises and helps maintain economic and social stability. To achieve this, they advocate for increasing the exploration and extraction of domestic natural gas, coal, oil, and other mineral resources. Additionally, expanding renewable energy sources such as solar, hydropower, and wind energy is crucial. These sources are environmentally friendly, cost-effective, and utilize the country’s own resources, reducing pressure on imported fossil fuels. **Mahbubur Rahman**, President of ICCIB, stated that gas and electricity shortages are a severe problem for production-oriented industries, with many factories at risk of shutting down. He warned that without immediate action, the economy could face significant negative consequences. Rahman called for the discovery of new gas fields, increased use of renewable energy, and adoption of new technologies for power generation. He also highlighted the need for better infrastructure to support Bangladesh’s transition from Least Developed Country (LDC) status, suggesting a six-year extension of the LDC graduation timeline. **Mahmud Hasan Khan Babu**, BGMEA President, emphasized that ensuring uninterrupted gas and electricity supply within the next year could help Bangladesh maintain dominance in the U.S. market. He expressed concern that the country’s gas reserves may deplete within the next seven to eight years, requiring $8-9 billion annually for LNG imports. Babu stressed that gas and electricity shortages are the biggest challenges for the garment sector, particularly for gas-dependent industries. He urged greater focus on developing infrastructure, such as additional LNG terminals, to address these issues. **Sakif Shamim** noted that rising energy prices or reduced supply in the international market significantly increase import costs, putting pressure on foreign exchange reserves and raising production costs. He advocated for continued efforts to discover new gas fields, particularly offshore, and increased investment in renewable energy. Shamim highlighted that 33% of power plants are struggling due to gas shortages, with 47% of Bangladesh’s power generation capacity being gas-based. Currently, 64 gas-based power plants with a total capacity of 11,000 MW are operational, but gas shortages have forced 3,000 MW of capacity to remain idle. On average, only slightly more than 6,000 MW of the remaining 8,000 MW capacity is produced daily due to a supply-demand gap, with 3.8 billion cubic feet of gas required daily against a supply of 3 billion cubic feet. Shamim explained that gas supply comes from domestic fields and imported LNG, but high costs and infrastructure limitations hinder consistent supply. Two floating LNG terminals in Maheshkhali are operational but face challenges, including high costs in the spot market. He suggested building land-based LNG terminals to reduce long-term import costs and expanding pipeline networks to enable long-term LNG import agreements. Shamim also noted that no major gas field has been discovered in the past 20 years, and efforts by BAPEX, the state-owned gas exploration agency, have been limited. He urged strengthening BAPEX and increasing offshore exploration, citing Myanmar’s success in the Rakhine Basin as an example. Shamim further highlighted that fuel shortages are the biggest risk to Bangladesh’s economy, disrupting industrial production and exacerbating challenges like high inflation, slowing growth, income inequality, rising government debt, and unemployment. He called for greater emphasis on renewable energy, including solar, nuclear, and wind power, to reduce reliance on fossil fuels.

**Pakistan’s Interest in Trade Expansion**: Alongside these discussions, business leaders noted Pakistan’s interest in increasing trade with Bangladesh, which could further bolster economic ties and support energy infrastructure development.