Bangladesh has incurred an additional $4.12 billion in energy-related expenditure over the past eight months as the ongoing Middle East crisis puts mounting pressure on the country’s energy sector, Prime Minister’s Adviser on Finance and Planning Rashed Al Mahmud Titumir said on Sunday.
Despite the growing financial burden, the government has initiated steps to develop Matarbari into a regional energy hub, he said, highlighting efforts to strengthen the country’s energy infrastructure amid global uncertainty.
Titumir made the remarks while speaking as chief guest at an event at the BGMEA Complex in Dhaka, where the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) launched a platform to monitor environmental, social and governance (ESG) practices and strengthen compliance capacity in readymade garment (RMG) factories.
He said competing in global markets solely through low-cost products was no longer enough, stressing that compliance with environmental standards had become essential for the industry’s long-term competitiveness and the well-being of future generations.
The adviser also highlighted the government’s reform initiatives to improve the investment climate, emphasising the need for consistent policies to attract investment. He said efforts were under way to establish a predictable five-year framework for tax policies.
Policy Exchange Bangladesh Chairman and Chief Executive Officer M Masrur Reaz, Brac Institute of Governance and Development (BIGD) Research Director Munshi Sulaiman and Danish Ambassador to Bangladesh Christian Brix Møller attended the event as special guests.
Discussing changing export market requirements, Reaz said 70 per cent of European buyers and 73 per cent of US buyers preferred to engage with environmentally friendly businesses.
Buyers increasingly sought transparency about carbon footprints throughout the production process, he added.
Noting that countries such as Vietnam and India had already made progress in similar initiatives, Reaz said ESG compliance had become indispensable to maintaining competitiveness in global markets.
Danish Ambassador Christian Brix Møller said proactive disclosure and sustainability initiatives would significantly strengthen the competitive position of Bangladesh’s manufacturing sector.
BGMEA President Mahmud Hasan Khan announced that the association planned to make ESG compliance mandatory for all its member factories.
Discussions would also be held with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on the issue, he said.
He added that any possible extension of Bangladesh’s timeline for graduation from the least developed country (LDC) category would provide valuable additional time for the garment sector to prepare for the transition and meet evolving international requirements.