Energy crisis will take 2 years to resolve: Finance Minister

The ongoing energy crisis will take at least two years to resolve, Finance and Planning Minister Amir Khasru Mahmud Chowdhury has said.

He said the problems surrounding gas and electricity could not be resolved within six months or a year and would require at least two years.

Explaining the timeframe, the finance minister said it would take around one and a half to two years to build a floating LNG terminal, meaning the crisis could not be resolved before then.

He made the remarks as the chief guest at an event organised by the American Chamber of Commerce in Bangladesh (AmCham) at Hotel InterContinental on Sunday afternoon.

The seminar focused on restoring investor confidence through policy reforms and effective implementation.

AmCham President Syed Mohammad Kamal chaired the event, where business leaders raised various concerns.

In his address, Amir Khasru said, “The economy cannot move forward without gas and electricity. However, we are swiftly taking whatever measures are possible. Gas exploration was neglected for a long time; now it is being resumed. Work is also under way on solar power and coal. We are determining how much of each type of energy will be required. The energy policy will be published within the next few weeks. People will then know what needs to be done. We will have to remain cautious over the next two years.”

Speaking on the government’s plans to increase revenue collection, the finance minister said the implementation and policy functions would be separated. The government was seeking to broaden the tax base, while a fixed-rate taxation system was being developed for small businesses alongside the creation of a database.

On the stock market, Amir Khasru said the government had been receiving warning signals and had subsequently introduced changes. “We need more listed companies,” he said.

Regarding the banking sector, the finance and planning minister said it was facing a severe capital shortfall that was too large for the government to cover. With the volume of non-performing loans also remaining high, he said alternative sources of financing were therefore needed.

The minister responded to various questions from business leaders at the meeting.

In his concluding remarks, AmCham President Syed Mohammad Kamal said, “We do not merely want to identify the challenges; we want to be part of the solution. This event has therefore been organised to rebuild confidence among businesses. More such initiatives will be held in the future.”