Israel, Iran war: Bangladesh rushes to secure $2 billion loan amid energy crisis

Dhaka: Bangladesh is pushing to secure loans of around $2 billion from multilateral agencies for tackling energy security concerns amid soaring global fuel prices driven by the Mideast war.

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The government has already taken several measures to curb fuel consumption, including halting production at most fertiliser factories.


The government has now adopted a three-pronged approach to ensure sustainable energy supply, the prime minister's finance and planning advisor Rashed Al Titumir said Saturday.

"Part of that is securing loans," Titumir told AFP.

"The International Monetary Fund (IMF) has committed $1.3 billion, while the Asian Development Bank (ADB) has pledged $500 million as budget support," Al Titumir said, adding the government was pursuing the loans for early disbursement.

The government may also approach the World Bank.

"As we want to keep foreign currency reserves intact, we have limited options other than seeking loans," Al Titumir said.

The government is also exploring alternatives for sourcing energy from "North America, South America or Africa".

"We are exploring all available options for alternative energy sources," Al Titumir said.

Bangladesh -- which imports 95 percent of its oil and gas needs -- has not raised electricity and fuel prices despite the global surge.

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Most crude fuel is sourced from Saudi Arabia and the United Arab Emirates, while around 35 percent of gas supply also comes from the Middle East.

An attack on a site at Qatar's Ras Laffan LNG hub could disrupt gas supply, given the country's reliance on the facility.

Since the outbreak of the Mideast war, authorities have taken several measures to curb fuel consumption.

These include setting limits on fuel purchases, halting production at most fertiliser factories, deploying police to patrol filling stations, and using the navy to escort LNG shipments.