DCCI urges govt adopt proactive policy measures to safeguard economy amid Mideast tensions
It said the crisis could significantly affect Bangladesh’s economy through rising energy prices, disrupted trade routes and financial volatility.
The Dhaka Chamber of Commerce & Industry (DCCI) today (11 March) urged the government to adopt proactive policy measures to safeguard the economy amid geopolitical tensions and conflict involving the US, Israel and Iran.
It said the crisis could significantly affect Bangladesh's economy through rising energy prices, disrupted trade routes and financial volatility.
In a statement, the chamber said Bangladesh, being a highly import-dependent economy, remains particularly vulnerable to external shocks stemming from such global conflicts.
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DCCI's recommendations include building strategic fuel reserves, diversifying energy import sources, ensuring smooth supply chain logistics and strengthening coordination among government agencies, financial institutions and the business community.
The conflict has already begun to destabilise global energy markets and maritime commerce, with international oil prices reportedly crossing $100 per barrel amid supply disruptions in the Middle East, a region that accounts for a substantial share of global oil and LNG exports.
DCCI noted that a sustained rise in oil prices could place considerable pressure on Bangladesh's external sector.
According to estimates, every $10 increase in global oil prices could raise the country's monthly import bill by about $70–80 million, potentially widening the trade deficit.
The chamber also pointed to disruptions in major shipping routes, particularly the Strait of Hormuz, through which nearly 20 percent of global oil and gas supplies pass.
Any prolonged disruption there could significantly increase freight costs, insurance premiums and delivery times for Bangladesh's imports and exports, it said.
Export-oriented industries, especially the ready-made garments (RMG) sector, may face higher logistics costs, supply chain delays and increased shipping risks, the DCCI said.
It also noted that Bangladesh's exports have already been under pressure for the past seven months due to domestic political and economic challenges.
However, the chamber said there has been some short-term relief in the country's energy supply situation, as more than 10 vessels carrying LNG, LPG, diesel and other fuels have recently arrived at Chittagong Port, helping stabilise the immediate supply.
Despite that, DCCI cautioned that the overall situation remains highly unpredictable.
If the conflict escalates further, Bangladesh could face a range of macroeconomic challenges, including higher fuel and electricity generation costs, rising inflation driven by increased transportation and production expenses, pressure on foreign exchange reserves and possible disruptions to remittance inflows from the Middle East.
DCCI also stressed the importance of diplomatic efforts to promote global peace and stability, noting that prolonged geopolitical conflicts could pose serious risks to global trade and the economic stability of developing countries like Bangladesh.
