Bangladesh Seeks $2 Billion Energy Aid

Amid global energy market disruptions caused by the ongoing conflict in Iran, Bangladesh is urgently seeking over $2 billion in foreign assistance to stabilise its fuel and liquefied natural gas (LNG) supplies and safeguard economic stability. The initiative has been spearheaded by the new government under Prime Minister Tariq Rahman.

Bangladesh relies on imports for nearly 95 per cent of its energy needs. Recent surges in international fuel prices, combined with supply chain challenges, have compelled the government to ration petroleum products. During the Eid-ul-Fitr festivities, some of these restrictions were temporarily eased to accommodate increased demand.

Rashed Al Mahmud Titumir, economic and planning adviser to the Prime Minister, told Reuters on Friday that Dhaka is currently negotiating with major multilateral institutions including the Asian Development Bank (ADB), World Bank, International Islamic Trade Finance Corporation (ITFC), and the Asian Infrastructure Investment Bank (AIIB). He said:

“We are receiving positive signals from multilateral partners for energy sector support. This will help accelerate our economic growth while ensuring energy security.”

Under the current programme, the government anticipates receiving $1.3 billion from the International Monetary Fund (IMF). In addition, the ADB is expected to provide $500 million in budget support, with a potential extra $250–$500 million.

“An IMF team is presently visiting Bangladesh. They had been waiting for an elected government. We will request them to release the funds within the current fiscal year, rather than in July,” Titumir added.

The Middle East conflict has heightened global concerns over supply chains and crude oil prices. Titumir emphasised that Bangladesh is diversifying its import sources to reduce reliance on any single supplier, seeking fuel supplies not only from the Middle East but also from the United States, Southeast Asia, and Nigeria.

Although global prices have risen, the government intends to shield consumers from immediate price hikes. Titumir noted:

“We are not increasing fuel prices at present. Financing arrangements will ensure the economy does not contract. Our focus is on multilateral support rather than private sector loans.”

Expected International Energy Support for Bangladesh

Bangladesh’s proactive approach underscores its determination to maintain energy stability, manage inflationary pressures, and ensure continued economic growth despite global volatility.