The prime minister’s private industry and investment advisor Salman F Rahman has said the government is not considering the use of alternative currency for foreign transactions and importing crude oil from Russia will not solve the crisis either.
“We don’t have capacity to refine the Russian crude oil. It is only possible to refine crude oil imported from Middle East at our refinery, and it is also not possible to refine the Russian crude oil at our facilities. So, even if we get opportunity to import Russian crude oil, we don’t have option to use it,” he said.
Salman F Rahman made these remarks while addressing ‘Meet the OCAB’ organised by the Overseas Correspondents Association Bangladesh (OCAB), a platform of Dhaka-based journalists working for foreign media outlets, at Bangladesh Investment Development Authority (BIDA) office at the capital’s Agargaon on Saturday.
At the event, he talked about a wide range of issues including fuel crisis, load shedding, investment, foreign currency and interest rate.
Salman F Rahman said, “Our main problem is gas and the rise in liquefied natural gas (LNG) price in the spot market has been a challenge to us and we can’t afford to purchase gas at such a high price. We are trying to get gas from all sources. We have long-term agreements on gas and we trying to renew those to get gas at lower price than spot market.”
“Global gas price triggered by the Russia-Ukraine war has created the crisis and Bangladesh, too, is affected, thus, causing power crisis locally. Facing fuel crisis will be the big economic challenge for next months,” he added.
OCAB convener Qadir Kallol, member secretary Nazrul Islam Mithu, members Julhas Alam, Shafiqul Alam, Serajul Islam Qadir, Farid Hossain and Pervin Chowdury were present at the event.
Replying to queries from newspersons, Salman F Rahman said, “70 per cent of power gas-dependent in the country, but gas price at spot market increases to such a high we cannot afford it. Hopefully, it global price will fall soon and it does not happen that will be a challenge for us in future.”
In reply to a query on whether the government has any plan to rise coal-fired power generation amidst existing power crisis, Salman F Rahman said, “We are still following a wait and see policy. We should keep environment aspect in mind while setting up coal-fired power plant, so, we are not taking any decision on it now.”
However, the government is working to reduce load shedding, he said adding, “We are rationing electricity based on importance and we trying so that power crisis does not affect much on power sector.”
Foreign loan and use of alternative currency
In reply to a query on whether Bangladesh will be under pressure to pay its debt on mega projects, Salman F Rahman said, “No such fear is likely. Many people speak about pressure of debt to create unnecessary fear. Bangladesh is relatively in a better position compared to many developing countries. Interest is low in most of our loans so we don’t have any fear to face a pressure.”
Regarding the use of alternative currency in foreign trade, Salman F Rahman said nothing is being considered separately for using alternative currency, but other currencies can be used in some cases on condition of adequate foreign currency reserve.
Interest and investment
In reply to a query on whether bank interest rates will increase, Salman F Rahman said, “One day, the interest rate ceiling will have to be lifted, but if interest is increased now to reduce inflation, it will affect the industry sector. That is why we are slashing import of luxury commodities instead of raising the interest rate.”
Asked whether imports had dropped amidst the current situation, he said imports fell slightly compared to prior the Russia-Ukraine war.