Gas shortage poses a looming catastrophe for both industry and employment
As energy intended for industrial use is diverted to electricity generation and fertiliser production, mills and factories are struggling to maintain even minimal capacity.
Our newspaper on Monday reported that the situation is dire, with reports indicating that nearly 400 gas-dependent factories are operating at a mere 30 to 40 per cent capacity in major industrial zones such as Gazipur and Narayanganj.
The implications of this crisis are staggering. With production in key sectors like knitwear and readymade garments plummeting by 70 to 90 per cent, the risk to over $70 billion in investments is alarmingly real.
Factory owners are grappling with cancelled export orders and rising layoffs, pushing many to the brink of closure. The urgency of the situation cannot be overstated; industry leaders are sounding the alarm, warning that without immediate intervention, the industrial sector may slide into recession.
Energy Adviser Fauzul Kabir Khan has assured business leaders that the government will increase gas supply to the industrial sector. However, promises must translate into action. The government’s commitment to assess the situation on the ground is a step in the right direction, but these inspections must lead to swift and effective measures to restore the gas supply.
However, Gazipur requires 600–700 million cubic feet of gas daily, but is receiving only about 450 million.
This shortfall forces factories to resort to costlier alternatives, driving up production costs and further jeopardising their viability. The Bangladesh Textile Mills Association has highlighted that the daily industrial demand for gas stands at approximately 2,000 million cubic feet, a stark contrast to current supply levels.
Moreover, the ongoing banking sector difficulties compound the crisis, placing additional pressure on production industries.
Factory owners are left to bear full energy and labour costs, rapidly depleting their capital reserves. The inconsistency in gas supply, with some factories receiving only two hours of gas per day, is driving foreign buyers to seek alternatives in other countries.
As experts warn of the potential long-term repercussions of this crisis, the government and relevant authorities must take decisive action. The stability of Bangladesh’s industrial sector, investment, and employment hangs in the balance. Urgent measures must be implemented to stabilise gas supply and restore confidence in the sector before it is too late.