The industrial sector in Bangladesh is facing significant economic losses due to the ongoing energy crisis, with factories losing up to Tk 2,387 crore a day in output, as reported by the Dhaka Chamber of Commerce and Industry (DCCI).
Even at 55 percent factory capacity, the estimated daily loss would be around Tk 1,074 crore, according to DCCI President Taskeen Ahmed.
This situation highlights the increasing financial impact of the energy shortage, leading to decreased production, higher costs for alternative fuels, challenges in meeting export demands, and hindrances in investment opportunities.
Following the disruption at the LNG terminal on July 21, Bangladesh’s industries have been struggling with a gas crisis for approximately a month, especially affecting industrial hubs in the past one to two weeks.
The country’s gas supply stands at around 2,420 million cubic feet per day (mmcfd) against a demand of about 3,800 mmcfd, resulting in a shortfall of approximately 1,380 mmcfd, equivalent to 36 percent of the demand.
Although about 800 mmcfd of LNG is being provided, industries are still facing low gas pressure due to a significant portion of available gas being used for electricity generation.
Taskeen emphasized that the energy crisis is no longer just a supply issue but is directly impacting industrial production, exports, investments, and employment in the country.
This negative impact is evident in the manufacturing sector, which saw a decline in growth to 2.86 percent in the fiscal year 2025-26 from 3.71 percent in the previous year, as stated by the DCCI president.
ESCALATING LOSSES FOR FACTORIES
The consequences of the energy crisis are particularly severe in industrial clusters, with Habiganj experiencing losses exceeding Tk 1,000 crore per day due to a complete gas shutdown in 171 factories. In Gazipur, around 18 percent of factories have reportedly temporarily closed, while Dhaka’s industrial areas are facing a gas shortage of about 45 percent.
Manufacturers are incurring costs beyond lost production, including ongoing payments to workers, loan servicing, and machinery maintenance during production disruptions.
To cope with power outages and gas pressure issues, many factories are resorting to diesel generators, which come at a higher cost compared to industrial gas. The additional expenses are impacting production costs and diminishing the competitiveness of industries, according to Asif Ibrahim, former chairman of Business Initiative Leading Development (BUILD).
Sectors heavily reliant on gas such as textiles, spinning, dyeing, ceramics, steel, glass, and fertilizers are particularly vulnerable to the energy crisis, leading to production disruptions, decreased efficiency, and challenges in meeting export deadlines.
“Energy shortages are no longer just operational inconveniences but have direct repercussions on investment, employment, exports, and economic growth,” highlighted Asif.
STALLED INVESTMENT PLANS
The energy crisis is also impeding new investments, with approximately 1,857 pending applications representing proposed investments of around Tk 35,000 crore due to the prolonged suspension of new industrial gas connections, according to Taskeen.
The impact is particularly harsh on cottage, micro, small, and medium enterprises, as they struggle to absorb increased fuel costs and extended production interruptions.
Nishat Nahrin Hamid, chairperson of the BGMEA Standing Committee on Energy Optimization, highlighted the challenges faced by factories in enhancing productivity amid the energy crisis, emphasizing the importance of productivity in the export manufacturing sector.
The frequent gas shortages and low pressure are compelling factories to operate below capacity and rely on costly alternative fuels, thereby elevating production expenses and impacting competitiveness. Nishat called on international brands to support suppliers as long-term partners and advocated for stable energy pricing.
URGENCY FOR POLICY MEASURES
Taskeen urged the government to increase LNG imports from multiple sources and prioritize industrial consumers. Asif recommended implementing predictable load-shedding schedules for industrial areas, reducing system losses, and introducing tax incentives for solar and storage systems.
In the long run, Asif emphasized the need for
