STAR BUSINESS REPORT

Bangladesh has shouldered nearly $2 billion in extra costs as global disruption drives up energy imports, said Finance Minister Amir Khosru Mahmud Chowdhury.

“The major sources of procurement were not working anymore. Due to disruptions, we have had to rely heavily on spot market purchases, which are significantly more expensive,” the minister said during a discussion at the Atlantic Council on the sidelines of the IMF-World Bank Spring Meetings in Washington.

Bangladesh imports about 95 percent of its energy. Following the US-Israel war on Iran and conflict across the Middle East, global supply chains took a severe hit. Oil and natural gas prices spiked as state-run agencies increasingly turned to the volatile spot market.

“And if this continues, I don’t know what the eventual outcome will be,” said Khosru, adding that prolonged disruption would deepen pressure on public finances.

To ease the pressure, he said the government is seeking new suppliers and more competitive deals abroad.

“We have also requested and received a waiver from the United States to import energy from Russia, which offers relatively lower prices. This will provide some relief,” said the minister.

At the same time, Bangladesh is strengthening energy ties with the United States and other development partners to secure longer-term price and supply stability, he added.