Business leaders decry 'economic assassination' amid crippling gas crisis

The backbone of Bangladesh's export economy is buckling under the weight of a persistent energy crisis – one that industry leaders now describe not as a temporary disruption, but as a systemic threat to industrial survival.

At a press conference yesterday, leaders of the Bangladesh Textile Mills Association (BTMA), painted a grim picture: production across textile mills – the vital feeder to the country's $45 billion garment industry – has been operating at just 40%-50% capacity in recent months. 

The situation has worsened in recent days, they said, after the government failed to deliver on its 14 May commitment to supply an additional 250 mmcfd of gas.

"If I talk about our industry, I will return to 1971," said Showkat Aziz Russell, president of the BTMA and chairman of Amber Group. "The way intellectuals were killed in 1971 – that was a great loss to the country. Now, in 2025, industrial entrepreneurs and industries are being killed in the same way."

His remarks, though emotional, reflect a growing sense of desperation among millers and exporters. 

Despite a 179% gas price hike in 2023 and a further 33% increase this year – moves justified by promises of improved supply – reality has deviated starkly from the commitment. Industries, especially those reliant on captive power, are left to fend for themselves amid declining gas pressure and growing production uncertainty.

The fallout is already being felt. Apparel exporters are missing shipment deadlines. The country is losing ground in global competitiveness. Opportunities to attract factory relocation from China and other regions – spurred by geopolitical tensions and shifting trade patterns – are slipping away.

But perhaps most concerning is the looming financial pressure ahead of Eid-ul-Adha. 

"We don't know how we will pay bonuses and wages to our workers," Russell said. "We are paying gas bills. We are servicing our bank loans. But our factories are being closed. This feels like a conspiracy against the very industry that has built this economy."

According to BTMA, gas supply from Titas alone has dropped by 100 mmcfd, further widening the gap between industrial demand and available energy. The textile sector – already battling weak global demand and rising borrowing costs – now finds itself caught in a vortex of rising input costs, falling productivity, and uncertain policy support.

Sunday's press conference drew a wide cross-section of the country's business leadership. Representatives from the FBCCI, BGMEA, BKMEA, LFMEAB, BCI, and ICC-Bangladesh echoed the BTMA's concerns and called for an immediate and sustainable resolution to the energy crisis.

Total gas supply stood at 2,750 mmcfd two days ago but dropped to 2,635mmcfd yesterday. Officials said an additional 100 mmcfd would be added to the national grid on 28 May.

The industrial sector requires 1,306mmcfd but is receiving only 994 mmcfd, resulting in a shortfall of 312 mmcfd, according to the Energy Division as of 7 May. However, industry representatives claim they need an additional 250 mmcfd beyond current allocations.

'Not a sectoral issue anymore'

"This is no longer a sectoral problem – it's a national crisis," said Razeeb Haider, director of the Bangladesh Textile Mills Association (BTMA). "The cost of inaction won't just be lost shipments or missed deadlines, but rising unemployment, falling investment, and mounting macroeconomic risks," he warned.

Showkat Aziz Russell sharply criticised the high cost of bank borrowing. "Why are interest rates so high? Because we are paying for the looters – those who plundered the banking system."

Russell also issued a stark warning to the government: "There are layoffs every day. People will take to the streets. The situation could spiral out of control. If power and energy shortages are not addressed now, we risk famine."

He noted that the Bangladesh Investment Development Authority (Bida) has failed to bring in a single new investor over the last eight months. "You're inviting foreigners to invest here – a process that takes five years to yield results. They know it's more profitable to invest in Vietnam than in Bangladesh."

Speaking at the same programme, Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury Parvez raised concerns about ongoing unrest at the National Board of Revenue (NBR).

"There's a new issue now – the NBR. Both the NBR and customs are barely functioning," he said.

10-day-long holiday

Criticising the government's decision to declare a 10-day public holiday, Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury Parvez questioned: "How can a struggling economy afford such an extended break? How can the government justify a 10-day shutdown when we can't even afford to lose a single day?"

Referring to the government's suggestion to consult trade unions over the holiday issue, he said, "Is this how a government functions? It's deeply unfortunate. If the state doesn't want industries to survive, then why should we be the ones facing jail?"

On the ongoing gas crisis, Parvez said discussions had become meaningless. "There's no shortage of meetings or promises – only a shortage of gas and electricity. Despite repeated assurances, we are left with nothing but empty words."

He stressed that the industrial sector could stay afloat if 150-200 mmcfd of gas were supplied to key hubs like Savar, Ashulia and Gazipur.

"Government officials had promised to provide 150 mmcfd to these areas weeks ago. They also said another 100 mmcfd would come from extra LNG cargoes – but that never happened."

Parvez further pointed out that high bank interest rates and energy shortages have pushed industrial output down to just 60%. "In this situation, we're now being told to pay workers' salaries before Eid-ul-Adha – with threats of arrest if we fail."

He added, "The government won't ensure energy supply. It has pushed up interest rates. We're forced to pay gas bills even when pressure is as low as 1-2 psi. Meanwhile, production is nearly paralysed – but we still have to repay loans."

'Industry sickened by vested quarter'

Former BTTLMEA chairman M Shahadat Hossain Sohel said a vested quarter is deliberately pushing the terry towel industry towards collapse by ignoring its basic needs.

"We never asked for gas to be concentrated in specific areas. We urged the government to rationalise supply so that every industrial zone gets a fair share," he said.

FBCCI representative Md Zakir Hossain Nayon said the industry is bleeding daily due to the ongoing gas crisis. "Our survival is at stake. The government must act urgently to protect jobs and the economy."

Nayon also called for the exploration of new gas fields and the introduction of Small Modular Reactor (SMR) technology to meet industrial demand.

BTMA Director Rajeev Haidar echoed the call for new gas exploration, while BTMA Vice President Saleudh Zaman Khan warned that without decisive government action, entrepreneurship in Bangladesh will dry up. 

"If the crisis isn't resolved by June, many factories may shut down after Eid," he added.