The US-Israeli war with Iran in the Middle East has had an impact on the economy of Bangladesh. The global energy market has become unstable due to the closure of the Strait of Hormuz for more than a month. As a result, the energy crisis has also caused chaos in Bangladesh. As a result, there is a fear of a decrease in the country's GDP and export earnings. Analysts blame the extreme dependence on the Middle East-based supply system for this.
They say that excessive dependence on the Middle East for energy, remittances and trade-supply systems will threaten the country's economy in a global crisis situation, which the recent Iran-US war has made us understand. In this situation, they have suggested reducing Middle East-based dependence and importing energy from alternative sources. At the same time, they have urged the government to take steps now towards renewable energy production in the long term.
Analysts say that considering land and other limitations, attention should be paid to the most accessible and effective options in the renewable energy sector. The government can move the country away from its dependence on imported, unstable energy by making significant and specific allocations in the upcoming national budget for renewable energy infrastructure and its specific implementation. Financial incentives such as tax-free renewable energy equipment and soft loans at low interest rates, as well as shifting fossil fuel subsidies to renewables can reduce the barriers to setting up new solar and wind power projects.
Professor Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said, “A radical shift towards renewable energy is needed to achieve sustainable energy capacity. However, to cope with the current situation, it is urgent to diversify import-based energy sources.”
He suggested expanding multilateral agreements and bilateral arrangements to obtain crude oil, refined fuels and LNG in the short term. He also said that until the situation improves, fuel rationing (QR-code based digital fuel pass) system should be implemented. In addition, it is necessary to shift production shifts in the industrial sector to off-peak hours.
This will reduce the duration of commercial activities. Through which it will be possible to supply limited energy reserves to the most important sectors (such as agriculture and export-oriented manufacturing sectors). At the same time, he suggested accelerating gas exploration activities in the country onshore and offshore to ensure reliable baseload power generation and reduce dependence on the volatile LNG market.
Bd-pratidin English/Lutful Hoque
