Trade deal with the US undermines sovereignty of energy security: Debapriya

Debapriya Bhattacharya, Distinguished Fellow of the Centre for Policy Dialogue (CPD), said, “The trade agreement with the United States is undermining the country’s sovereignty over energy security. The current government says it will not pursue country-specific foreign policies. Yet that is exactly what is happening in the trade deal—we now need permission regarding whom we can buy oil from.”

He made these remarks on Saturday at a pre-budget “shadow parliament” debate competition on ensuring energy security in the national budget, organised by Debate for Democracy.  

The debate competition was chaired by Hasan Ahmed Chowdhury, Chairman of Debate for Democracy.

Debapriya Bhattacharya, also the convener of the Citizens’ Platform, addressed reform issues, raising several questions, “Why is the International Monetary Fund (IMF) not releasing loan installments? Why could we not implement the reform proposals made at the end of the interim government’s tenure? A white paper on the economy has been prepared, along with reform documents for various sectors. It now seems these proposals are destined for museums.”

He questioned the current government’s stance on reform-related ordinances issued during the interim period, adding that early signals from the government have not been encouraging. Although the election manifesto mentioned forming a reform commission, it has not been established even after two months. He urged that such a commission be formed without delay.

On the energy crisis, he said, “A cabinet subcommittee has been formed to address the situation. I don’t know how many times it has met. If it cannot reduce the queues of vehicles at petrol pumps, what has it actually achieved?”

Debapriya Bhattacharya described the energy and banking sectors as the “lungs” of the economy, while public financial management (PFM) functions as the “heart,” encompassing revenue, expenditure, and deficit financing.

He emphasised the critical importance of energy in the economy, advocating a transition from fossil fuels to renewable energy.

Over the past 17 years, he argued, the energy sector has been marked by controversy and misdirection. Despite having domestic gas reserves, there has been insufficient investment. The state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) has been rendered ineffective—failing both to attract foreign investment and to invest domestically. Instead of building a production-oriented energy sector, policies have favoured import-dependent energy trade, creating entrenched vested interests.

Debapriya Bhattacharya also questioned the financial viability of the new government’s plans to introduce various cards, such as family cards, farmer cards, and sports cards. Drawing an analogy, he said an athlete takes a few steps back before making a long jump. Similarly, given the current economic situation, it may be necessary to step back slightly.

He stressed that the government should outline where it wants to take the economy in five years, and that this vision should be reflected in the upcoming budget.

As chief guest, he offered three key recommendations for reforming the energy sector:

1. Subsidies funded by taxpayers’ money should not disproportionately benefit the wealthy.

2. Investment in energy exploration must be increased.

3. Affordable energy imports should be ensured.

Hasan Ahmed Chowdhury said the current government has begun its journey burdened with a fragile economy, which is now passing through a critical phase. The prolonged conflict in the Middle East has further intensified economic pressures.

He added that disruptions in energy supply are hampering production and increasing import costs, which in turn are driving up prices. As a result, the entire economy is becoming entangled in a cycle of energy crisis.

In the competition, debaters from Jatiya Kabi Kazi Nazrul Islam University in Mymensingh emerged victorious, defeating participants from Stamford University Bangladesh. The motion debated was-- “Economic security can be achieved in the upcoming budget only by ensuring energy security.”

The judging panel included SM Morshed, journalist Saidul Islam, Md Alamgir Hossain, Ziaul Haque, and Sheikh Abdullah. Trophies, crests, and certificates were awarded to the participating teams. The shadow parliament was organised by Debate for Democracy.