The country's industrial sector has come under pressure due to instability in the global market and a shortage of fuel supplies at home.
Because of the lack of uninterrupted electricity and gas, factory owners are having to rely on alternative arrangements to keep production running. As a result, production costs have risen sharply, ultimately driving up the final prices of goods.
Entrepreneurs in the country's key export sectors—including the ready-made garment industry—as well as heavy industries such as steel, cement, ceramics, and processed foods have expressed concern over the situation.
Ensuring an uninterrupted supply of gas and electricity has become a major challenge for factories located in industrial hubs such as Gazipur, Savar, Narayanganj, Chattogram, and Mymensingh. Sudden voltage drops and power outages are damaging modern and sensitive machinery.
Rising Costs Due to Alternative Arrangements
To prevent production from coming to a complete standstill, business owners are being forced to adopt expensive alternatives. These measures are directly increasing production costs. Irregular electricity supply and low gas pressure are also causing damage to materials in sensitive textile and dyeing factories.
Because of insufficient fuel, most factories are unable to operate at full capacity. However, fixed expenses such as workers' wages, factory rent, and bank loan repayments remain unchanged. Consequently, the average cost of producing each unit of goods has increased significantly.
Entrepreneurs fear that Bangladesh is losing its competitive edge in the global supply chain compared with rival exporting countries, particularly in ready-made garments and other export products. Many factories are also unable to meet their scheduled export deadlines.
Fazlee Shamim Ehsan, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and President of the Bangladesh Employers' Federation, told Ittefaq that the ongoing gas crisis is preventing exporters from shipping existing export orders on time.
Beyond the immediate losses caused by the gas shortage, the greatest concern is the impact on future export orders. Even when factories cannot produce, they must continue paying workers' salaries, bank loan installments, and other operating expenses. As a result, entrepreneurs are facing substantial financial losses.
To address the crisis, BKMEA has submitted several demands to the government. These include:
- Allowing gas and electricity bills for June and July to be paid in installments over the next 12 months.
- Ensuring that gas or electricity connections are not disconnected due to delays in bill payments.
- Requiring the government or Petrobangla to provide weekly briefings on the gas supply situation.
The association has also called for illegal gas connections to be disconnected and for the government to encourage the use of LPG instead of CNG in sectors other than public transportation.
Regarding bank loans, the BKMEA Executive President said the association has requested Bangladesh Bank not to classify companies that fail to repay loan installments because of the gas crisis as loan defaulters or non-performing borrowers for at least six months.
He also urged the government to take the initiative to establish land-based LNG terminals in anticipation of Bangladesh's growing dependence on imported gas in the future.
Finally, he stressed that the government must provide clear policy direction regarding the future of industrialization. Specifically, it needs to decide whether industries should gradually reduce their dependence on natural gas and shift toward alternative energy sources such as solar power or other forms of energy.
