Finance Minister Amir Khosru Mahmud Chowdhury today (9 June) said the government may lead to nearly Tk42,600 crore in additional subsidies for the oil, gas, power and fertiliser sectors this fiscal year due to recent tensions involving Iran and instability in the global energy market.
Replying to a question in parliament today, the finance minister said the situation has created additional pressure on the government’s subsidy expenditure.
He said the estimated additional subsidy requirement includes around Tk10,258 crore for fuel oil, Tk11,170 crore for gas, Tk19,821 crore for electricity and nearly Tk1,350 crore for fertiliser.
Despite the growing fiscal burden, the government has continued its policy and financial support to protect the general public, agriculture and the production sector, he added.
Amir Khosru said the recent instability in the Middle East, including in Iran, has created both immediate and potential risks for Bangladesh’s economy.
“So far, the impact has been most visible in the areas of energy, fertiliser, import costs, transport expenses, inflation, foreign currency management, remittance inflows and overseas employment,” he said.
However, he noted that a reliable assessment of sector-wise losses would require coordination of data from the relevant ministries and agencies.
The finance minister said rising international prices of fuel oil, LNG and fertiliser have increased pressure on import and production costs.
Higher energy prices could also raise costs in the electricity, transport, agriculture and industrial sectors, which may indirectly affect market prices and inflation, he said.
He further warned that prolonged instability in the Middle East could pose risks to overseas employment and remittance inflows, as the region remains a major destination for Bangladeshi migrant workers.
The government is closely monitoring the situation, Amir Khosru said, adding that several measures are being taken, including diversifying energy import sources, expanding domestic gas exploration, ensuring the supply of essential commodities, maintaining caution in foreign exchange management and exploring alternative labour markets.
He said the government would take necessary policy and administrative measures once reliable sector-wise damage assessments become available.
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