Bangladesh’s industrial sector is grappling with severe challenges, primarily stemming from an acute gas and electricity crisis, high interest rates, and a shortage of dollars.
The ongoing disruptions have led to a sharp decline in production, forcing the closure of several hundred factories while many others are struggling to stay afloat.
A significant number of factories are failing to pay wages on time, triggering growing labour unrest.
Amid this turmoil, the government is reportedly considering a substantial gas price hike.
Experts at a seminar organised in the capital on Sunday by Policy Exchange Bangladesh and the Economic Reporters Forum (ERF) warned that doubling the price of gas for industrial use would deter investment and increase dependence on imports, placing additional strain on the economy.
Masrur Riaz, chairman of Policy Exchange Bangladesh, stated in the keynote presentation that a gas price hike under current economic conditions would escalate production costs, diminish competitiveness, and hinder new investments.
He cautioned that industries such as cement, steel, and ceramics would become even more reliant on imports, exacerbating financial instability.
The crisis is already taking a toll on the financial sector, with industrial closures and rising non-performing loans in banks.
Anwar-ul-Alam Chowdhury, president of the Bangladesh Chamber of Commerce and Industry (BCCI), expressed concern over the interim government’s failure to ensure industrial security.
He pointed out that despite high bank interest rates and gas prices, the government has failed to provide an adequate gas supply.
“The government plans to increase gas prices by 150% for new industries and 50% for expansion. Under such circumstances, no one would want to invest in industry. However, abandoning existing industries is not an option. If we are to sustain the economy, gas prices must be reduced rather than increased,” he asserted.
With a rapidly growing population, the demand for employment is surging, yet industrial expansion is stagnating.
On the contrary, existing industries are shutting down, raising concerns about how employment will be generated for the burgeoning workforce.
Industrialists have reported that gas shortages have already reduced production by 50–60% in key industrial zones such as Gazipur, Mymensingh, Narayanganj, and Savar, severely disrupting production schedules and supply chains.
Stakeholders argue that an ill-planned gas price hike will only push the sector further into turmoil.
They call for well-thought-out policies to foster industrial growth rather than decisions that could accelerate its decline.
