Bangladesh has incurred an additional $4.12 billion in energy expenditure because of supply disruptions caused by the West Asia war, Prime Minister’s Advisor on Finance and Planning Rashed Al Mahmud Titumir has said.
The government plans to develop Matarbari into an energy hub to better manage future crises, he said.
Titumir was speaking at the inauguration of the Bangladesh Garment Manufacturers and Exporters Association's (BGMEA) ESG Platform on Monday.
Eight months ago, the BNP formed the government following the national parliamentary election in February.
The government's economic reform programme aims to strengthen the economy by creating jobs, reducing poverty, expanding social protection and increasing investment in production, Titumir said.
"We are working to take Bangladesh forward while tackling the challenges of a fragile economy inherited by the government, high inflation, unemployment and the energy crisis caused by conflict in West Asia," he said.
The country's young and educated population presents a major employment challenge, he said, noting that women account for a significant proportion of those who are outside employment, education and training.
Creating jobs and increasing the participation of women and young people in economic activities are essential, he said.
Titumir said the government had taken initiatives to waive agricultural loans, introduce Family Cards and increase spending on education and healthcare since taking office.
These programmes would help ease the cost-of-living pressure on low-income people and strengthen social protection, he added.
On economic growth, he said forecasts from international organisations varied.
The International Monetary Fund's (IMF) projections were generally lower than those of the Asian Development Bank (ADB), while the World Bank's forecasts tended to fall between the two.
The implementation of reforms would play an important role in determining the country's growth trajectory, he said.
On Bangladesh's graduation from the least developed country (LDC) category, Titumir said discussions were progressing at relevant international forums on a proposal to extend the country's preparation period for graduation.
The government was prioritising policy continuity, improvements to the business environment, greater access to financing, energy security and uninterrupted connectivity for the transportation of goods to create an investment-friendly environment, he said.
To ensure energy security, the government has taken initiatives to expand renewable electricity generation, explore new gas fields, increase supplies of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), and install floating storage and regasification units (FSRUs), Titumir said.