Energy crisis to take two years to fix: Khosru

Bangladesh’s ongoing gas and electricity shortages will take at least two years to resolve, Finance and Planning Minister Amir Khosru Mahmud Chowdhury cautioned.

However, he assured investors that the government is working urgently to address energy bottlenecks.

“The economy cannot move forward without electricity and gas. We are trying to do everything in the fastest possible time,” Khosru said during a discussion organised by the American Chamber of Commerce in Bangladesh (AmCham) at the Hotel InterContinental in Dhaka on Sunday.

To tackle the deficit, Khosru noted that the government is finalising plans for floating LNG terminals and onshore gas storage facilities, with official details expected in the coming days.

He also identified transmission as a major weakness in the power sector, saying generation is not the only challenge.

“A large amount of electricity has been generated in the power sector, but transmission has become a major problem,” he said.

The minister said the government is also reviewing the country’s power generation strategy and energy mix, with renewable energy and gas-based generation expected to play important roles.

“Coal is a resource we have, and we are also examining the coal-based option,” he said.

Tax base to be widened

On revenue mobilisation, Khosru said the government would separate the policy and implementation functions of the revenue administration while working to bring more businesses into the tax net.

Small businesses, he said, would be brought under a simplified fixed-rate tax system, with a database being developed to support the initiative.

More firms needed on stock market

Regarding the capital market, the minister said the government had received warning signals about the stock market and had already introduced changes.

“We need more companies to be listed on the stock exchange,” he said.

Banking sector faces huge capital gap

The minister painted a grim picture of the banking sector, saying banks are facing a severe capital shortfall alongside a high volume of non-performing loans.

“The deficit is so large that it is beyond the government’s capacity to cover. The volume of non-performing loans is also very high. Therefore, we need alternative sources of financing,” he said.

AmCham seeks to rebuild investor confidence

AmCham President Syed Mohammad Kamal said the business community wanted to move beyond simply identifying problems and become part of the solution.

“We do not want to merely identify the challenges; we want to be part of the solution,” he said, adding that AmCham would organise more initiatives to help restore business confidence.

Kamal said Bangladesh has strong potential to attract more US investment, particularly in emerging and technology-driven sectors.

However, he stressed that consistent implementation of policy reforms would be essential to turn that potential into sustained investment.

Md Mahbubur Rahman, CEO of HSBC, said investor confidence ultimately rests on the security and stability of capital, supported by a predictable and transparent business environment.

He also stressed the importance of facilitating trade and building on Bangladesh’s competitive strengths to attract greater domestic and foreign investment.