Energy security at risk from US deal
Economist Debapriya Bhattacharya has cautioned that an “unequal” agreement signed by the interim government with the United States could undermine Bangladesh’s energy security and sovereignty, describing it as a potential obstacle to ensuring a stable energy supply.
Speaking as chief guest at a pre-budget shadow parliament organised by Debate for Democracy at the FDC on Saturday, the distinguished fellow of the Centre for Policy Dialogue said the deal introduces significant risks for the country’s energy sector.
Mr Bhattacharya also criticised past energy policies under the previous government, describing them as “misleading and controversial”.
He argued that these policies prioritised import dependence over the development of domestic resources, largely driven by vested interests.
He noted that key institutions, including Bangladesh Petroleum Exploration and Production Company Limited (Bapex), had been weakened over time due to insufficient investment in local exploration and production.
As a result, reliance on imported fuels — particularly liquefied natural gas — has increased.
Addressing geopolitical concerns, he said the Strait of Hormuz does not currently pose a major threat to Bangladesh’s energy imports.
However, he reiterated that the recent agreement with the US could have deeper structural implications for the sector.
Mr Bhattacharya further suggested that Bangladesh could consider taking advantage of a reported one-month waiver from the US to continue importing oil from Russia, if feasible.
Calling for greater transparency, he urged the government to disclose the activities of the cabinet sub-committee on energy security and ensure parliamentary debate on its decisions.
He also expressed concern over the lack of visible progress in forming reform commissions, despite earlier commitments.
In his presidential remarks, Hasan Ahmed Chowdhury Kiron, chairman of Debate for Democracy, said corruption and excessive reliance on imports have hindered Bangladesh’s path towards energy self-sufficiency.
He warned that ensuring energy security would be a major challenge in the upcoming budget, particularly amid ongoing economic pressures.
Mr Kiron also highlighted delays in external financing, noting that Bangladesh is unlikely to receive the next $1.3 billion instalment from the International Monetary Fund in June, which could further strain the economy.
He stressed the need for a budget that supports both citizens and businesses, easing the burden on low- and middle-income groups while promoting investment and job creation.
At the event, students from Jatiya Kabi Kazi Nazrul Islam University in Mymensingh won the debate competition, defeating participants from Stamford University Bangladesh.
The contest was held under the theme: “Economic protection can be achieved only by ensuring energy security in the next budget.”
