Japan ‘seriously considering’ concrete measures to help Bangladesh bridge energy gap: Envoy

Japan, in collaboration with international partners, is now “seriously considering” concrete measures to help Bangladesh bridge its energy gap and build a more resilient and sustainable energy supply chain, Shinichi Saida, ambassador of Japan to Bangladesh, has said.

“This effort would not only benefit Bangladesh but also contribute to broader stability across the Asia-Pacific region,” he said at a strategic discussion today (20 April). 

He reaffirmed that supporting partners in times of need reflects “Japan’s way” of cooperation. Focusing on energy, the ambassador said Bangladesh is currently facing an imminent energy challenge and that Japan is taking the matter seriously. 

He mentioned that Japan’s prime minister has already initiated steps to expand existing cooperation frameworks and recently held a virtual summit with Bangladesh’s leadership, where both sides agreed on a shared vision for enhanced energy security.

Attending the Asia Zero Emission Community (AZEC) Plus Online Summit led by Japan held on 15 April, Prime Minister Tarique Rahman sought a $2 billion fund from development partners to meet Bangladesh’s immediate energy needs and safeguard its economic stability. Tarique appreciated Japanese Prime Minister Sanae Takaichi for convening this timely and important Summit.

At today’s discussion, the Japanese envoy further said high-level bilateral engagement is expected to intensify, citing ongoing discussions between the two countries’ energy authorities.

Turning to the EPA, the ambassador described it as a transformative and forward-looking agreement that goes beyond tariff reduction. He stressed that the EPA is designed as a long-term framework – spanning 15 years or more – to ensure business security, boost investor confidence, and deepen bilateral relations.

He emphasised that sustained political stability, rule of law, and a conducive business environment will be critical to realising the full benefits of various initiatives as well as the EPA.

Bangladesh and Japan on 6 February signed an economic partnership agreement in Tokyo to enhance bilateral trade relations, marking Bangladesh’s first EPA with any country.

The discussion on “Advancing Bangladesh-Japan Economic Partnership Agreement (EPA)” was organised by the Japanese Commerce and Industry Association In Dhaka (JCIAD), Japan External Trade Organization (Jetro) and Japan-Bangladesh Chamber of Commerce & Industry (JBCCI) at a city hotel in Dhaka. It was supported by HSBC.

‘Reducing the cost of doing business top priority’ 

Describing the EPA as a “milestone agreement”, chief guest of the event Commerce Minister Khandakar Abdul Muktadir said it opens a new horizon for Bangladesh’s economic transformation and future growth. 

He said Bangladesh is an “investment-hungry” economy, backed by a large and youthful population, with over 100 million people of working age and a rapidly expanding middle class of around 40 million consumers with growing purchasing power.

The minister identified structural reforms as a top priority, particularly in reducing the cost of doing business. He said Bangladesh’s logistics cost currently stands at around 16% of GDP – significantly higher than the global average of 10% – and announced plans to improve port efficiency, enhance productivity, and lower per-unit costs.

He further stated that the government is working to simplify administrative procedures and regulatory processes. Committees involving private sector representatives will be formed to identify bottlenecks in public service delivery and recommend practical solutions, allowing businesses to operate more efficiently.

A key focus of his speech was the removal of non-tariff barriers. The minister revealed that the government has already taken steps to address a detailed list of such barriers raised by international partners, including the European Union. 

He affirmed Bangladesh’s commitment to resolving all identified issues in a short timeframe and invited Japanese businesses to submit similar lists, assuring that those concerns would also be addressed promptly.

He noted that meeting Japanese quality standards would enable Bangladeshi products to compete effectively in global markets.