Dhaka: Finance Minister Amir Khosru Mahmud Chowdhury announced in Parliament today that Bangladesh will need an additional subsidy of approximately Tk 42,600 crore for the oil, gas, electricity, and fertilizer sectors in the fiscal year 2025-2026. This financial burden is attributed to the ongoing conflict in the Middle East.
According to Bangladesh Sangbad Sangstha, the finance minister highlighted that recent conflicts in the Middle East, including Iran, have intensified instability in the global energy market, subsequently increasing the government’s subsidy obligations in critical sectors. The projected additional subsidy requirement is expected to reach Tk 42,600 crore by June 2026.
The finance minister’s response came after a query from lawmaker SM Jahangir Hossain, who sought clarification on the economic impact of the Middle East conflict on Bangladesh. Of the total additional subsidy, Tk 10,258 crore is anticipated for oil, Tk 11,170 crore for gas, Tk 19,821 crore for electricity, and Tk 1,350 crore for fertilizer.
Amir Khosru elaborated on the broader economic implications, noting that the Middle East unrest poses immediate and potential risks to Bangladesh’s economy. The impacts are especially evident in fuel, fertilizer, import and transport costs, inflation, foreign exchange management, remittances, and foreign employment.
The minister noted the increased prices of fuel oil, LNG, and fertilizers in the global market are exerting pressure on import and production costs. The hike in energy prices is likely to influence costs across electricity, transport, agriculture, and industrial sectors, potentially affecting market prices and inflation.
He further emphasized the importance of the Middle East for Bangladeshi expatriate workers, warning that prolonged instability could jeopardize foreign employment prospects and remittance inflows. In response, the government is actively monitoring the situation and taking measures such as diversifying energy import sources, exploring local gas, ensuring the supply of essential goods, managing foreign exchange cautiously, and seeking alternative labor markets.