Bangladesh Targets Energy Security by 2029

Industries and businesses facing the country’s ongoing energy shortages are expected to see relief by the coming winter, according to Dr Rashed Al Mahmud Titumir, the Prime Minister’s Adviser for Finance and Planning. He said visible improvements in the energy situation were expected before winter, while the government was targeting uninterrupted energy security by 2029 to support a large and growing economy.

The adviser made the remarks while speaking to journalists at the Secretariat on Thursday. He discussed a broad range of government initiatives, including the energy crisis, inflation, the proposed new pay structure for public servants, investment, employment generation, revenue mobilisation and wider economic reforms.

Addressing the energy shortage, Titumir said inadequate fuel reserves in the past had intensified the impact of supply disruptions. The government is now considering alternative transport routes and additional sources of energy to reduce the economy’s vulnerability to such shocks.

A framework is also being developed to maintain buffer stocks of fuel and electricity-related inputs, similar to the approach used for food security. The target is to maintain fuel reserves equivalent to at least three months of national requirements. The government is also working towards keeping enough raw materials for power generation to cover three months of demand.

The adviser said a tender would be invited in November this year for oil and gas exploration in Bangladesh’s maritime territory. Bangladesh Petroleum Exploration and Production Company, or BAPEX, will be involved in the process. The government is also considering ways to make more effective use of the country’s coal resources as part of efforts to diversify the energy supply.

Solar power is another area being prioritised. Titumir said the government wanted households and other consumers to become electricity producers as well as users by making net metering more effective. So far, 36,000 applications have been received under the initiative. The government has set a target of obtaining 5,000 megawatts of electricity from solar power by November 2029.

The government is also moving ahead with preparations for a new pay structure for public servants. According to the adviser, the Secretariat Committee has reviewed reports prepared by the Pay Service Commission and the pay committee for the armed forces. Work by the pay committee for the judiciary has also begun.

The final decision on the new pay structure, including its implementation date, will be taken at a Cabinet meeting. The government plans to finance the new pay scale by increasing domestic revenue mobilisation and, if necessary, through borrowing.

On inflation, Titumir said the government was pursuing a coordinated approach involving fiscal and monetary policy, production, energy supply and social protection. Rather than relying on a single policy measure, the government intends to address the pressures affecting economic stability through measures across several sectors.

Social protection is also part of the government’s broader response to economic hardship. During the current financial year, 4.1 million people are being brought under the Family Card programme on the basis of what the adviser described as a scientific approach to identifying beneficiaries. The initiative could reduce poverty by up to five percentage points, according to government estimates. In addition, 1.2 million farmers have received support through the waiver of loans of up to Tk10,000.

Titumir also outlined measures intended to strengthen investment and revive factories that have remained closed for prolonged periods. To improve investor confidence, the government has introduced a five-year plan for the tax system and made changes to bonded warehouse policy. It is also setting specific time limits for approvals in an effort to reduce bureaucratic delays and administrative complications.

Tendering is under way for the transfer of closed factories by December following the introduction of relevant laws and ordinances, the adviser said. The government is also targeting the start of production at new economic zones and export processing zones in Chattogram and Mongla within the next 18 months.

Efforts are being strengthened to finance agriculture-linked industries in the northern region. The pharmaceutical sector is also expected to receive greater attention, with a delegation from the United States scheduled to visit Bangladesh to assess standards in the industry.

The government’s wider economic strategy, according to Titumir, is centred on addressing accumulated economic pressures while pursuing its stated vision of a democratic, humane and welfare-oriented state under the principle of putting Bangladesh first. Energy security, investment, employment, revenue mobilisation and social protection are being treated as interconnected elements of that broader effort.

The proposed three-month fuel reserve, expanded domestic and maritime energy exploration, increased solar generation and efforts to diversify energy sources are intended to make the country’s economy less exposed to sudden supply disruptions. The 2029 target therefore represents not only an energy-sector objective but also a longer-term plan to provide more predictable conditions for industry, investment and economic activity.