DHAKA: Liquefied natural gas cannot be a long-term solution to the country’s energy crisis that is hindering industrialization in a big way, president Dhaka Chamber of Commerce and Industry said.
The newly elected president of the DCCI AK Khan said, “LNG import should only be a short-term solution,” at a media briefing at the chamber’s headquarters in Dhaka. The government plans to start LNG import by the year-end, and before that its price will be announced for industrial use. It is anticipated that the LNG price will be higher than that of natural gas.
“Cheap labor and energy are our competitiveness. If the energy price goes up with the import of LNG, the cost of production will also rise and we will lose our competitiveness.”
Bangladesh should depend on its own gas and coal — and not on imports. Gas exploration should be the top priority of the government, he said. Citing the energy issue as a major barrier to growth and investment, Khan said coal-based energy security has to be considered as a long-term strategy for the economic development of Bangladesh.
Apart from energy, infrastructure bottleneck is another major obstacle to the economic growth.
Referring to a report from PricewaterhouseCoopers, Khan said every $1 invested in infrastructure development is expected to yield additional increase in GDP by $0.05-$0.252, which implies growth by 5-25 percent.
“Development of infrastructure is also crucial for enhancing trade competitiveness,” he said, while requesting the government to form a public-private partnership for infrastructure development.
He however was hopeful that Bangladesh can be the 30th largest economy by 2030. “Still, we have enough time and it is possible if we can create the atmosphere.”
