Bangladesh is \u200bseeking billions in external financing to secure fuel and liquefied natural gas imports, as \u200cthe new government led by Prime Minister Tarique Rahman moves to stabilise the economy amid a worsening global energy outlook due to the Iran war.<\/p>\n
The nation of 175 million relies on imports for about 95% of its energy needs, and \u200bstate-run agencies have increasingly turned to the volatile market to plug the gap. The government has \u200bbeen rationing fuel, though the restrictions were eased for the Eid ul-Fitr festival.<\/p>\n
Rashed Al \u2060Mahmud Titumir, the prime minister's adviser on finance and planning, said today (20 March) that Dhaka was in talks \u200bwith major development lenders, including the Asian Development Bank, the World Bank, the International Islamic Trade Finance Corporation and \u200bAsian Infrastructure Investment Bank, to mobilise fresh funding.\u00a0<\/p>\n
"There are positive indications that we'll receive funds from the multilateral agencies to support oil and energy, which will help accelerate economic growth," Titumir told Reuters.<\/p>\n
He said he expected about $1.3 billion from \u200bthe International Monetary Fund under an existing programme, along with an additional $250 million to $500 million on \u200btop of roughly $500 million in budgetary support from the ADB.<\/p>\n
"An IMF team is visiting… they were waiting for an \u200celected government. \u2060We will request them to release the funds now, instead of July, so we receive them within the current fiscal year," he said.<\/p>\n
The urgency has grown amid an escalating conflict in the Middle East that has roiled global energy markets, pushed up prices and increased concerns about supply routes.<\/p>\n
"Our financing \u200bflow for oil and energy \u200bmust not be \u2060disrupted under any circumstances," Titumir said.<\/p>\n
"We will ensure financing is available and diversify our sources of oil and energy."<\/p>\n
He said Bangladesh was exploring procuring additional supply \u200bfrom the United States, Southeast Asia, Nigeria and producers in the Middle East, \u200bto avoid \u2060over\u2011reliance on a single source.<\/p>\n
Despite rising global prices, Dhaka does not plan to pass the burden on to consumers, he said.<\/p>\n
"We are not increasing fuel prices. We will provide the necessary financing so there is \u2060no contraction \u200bin the economy," Titumir said, stressing that the government aims \u200bto rely on multilateral support rather than private\u2011sector borrowing.<\/p>\n
Bangladesh adjusts government\u2011set fuel prices each month, based on a global pricing formula.<\/p>\n