Bangladesh is scrambling to borrow about 2 billion dollars from multilateral agencies to address energy security issues, as skyrocketing international fuel prices are driven by the war in the Middle East.
Bangladesh Seeks $2 Billion Loan Amid Energy Crisis
The government has already taken several measures to reduce fuel consumption, such as suspending production at most fertiliser factories.
To ensure the supply of renewed energy, the Prime Minister’s Finance and Planning Advisor, Rashed Al Titumir, indicated on Saturday a three-pronged approach by the government.
Part of it is the acquisition of loans, Titumir informed AFP.
Iran-Israel Conflict Pushes News Crisis For Bangladesh
Al Titumir said that the government had sought the loans to be disbursed early as the International Monetary Fund(IMF) has committed itself to creating a budget support amounting to 1.3 billion, and the Asian Development Bank (ADB) has committed itself to extending a loan amounting to half a billion dollars.
The government can also do the same with the World Bank. Al Titumir explained that since we remain in the desire to retain foreign currency reserves, we are left with no choice but to loan.
The government is also considering other options for obtaining energy from North America, South America, or Africa.
Al Titumir said we are looking at every possible source of alternative energy.
Bangladesh Scrambles for Funds
Bangladesh, which imports 95 percent of its oil and gas requirements, has failed to increase electricity and fuel prices with the global spurt.
The majority of the crude fuel is produced in Saudi Arabia and the United Arab Emirates, and approximately 35 percent of gas supply is also provided by the Middle East.
Energy Security Threat: Bangladesh Looks Beyond Middle East for Fuel
Any attack on the Ras Laffan LNG hub in Qatar may affect gas supply, as the country depends on the facility.
Following the outbreak of the Middle East war, the authorities have taken several measures to prevent fuel consumption.
These include establishing maximum fuel acquisitions, closing most fertiliser plants, dispatching police to patrol filling stations, and naval escorting of LNG shipments.
