Middle East crisis adds $4.12b to energy costs in 8 months: Titumir
Titumir said relying solely on low-cost products is no longer sufficient to survive in global competition.
Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir today (19 October) said that the ongoing Middle East crisis has created mounting pressure on the energy sector of Bangladesh, resulting in an additional expenditure of $4.12 billion over the past eight months.
Despite these fiscal pressures, the government has initiated steps to develop the Matarbari area into a regional energy hub, the adviser said.
He made the remarks while speaking at an event as the chief guest at BGMEA Complex in Dhaka where the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) launched a new platform designed to monitor environmental, social, and governance (ESG) practices and enhance compliance capacity in readymade garment (RMG) factories.
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Titumir said relying solely on low-cost products is no longer sufficient to survive in global competition. Adhering to environmental standards is imperative for future generations, he added.
Highlighting the government's reform agenda to improve the investment climate, the adviser stressed the importance of policy consistency in boosting investments, noting that efforts are underway to ensure a five-year predictable framework for tax policies.
Policy Exchange Bangladesh Chairman and CEO M Masrur Reaz, Brac Institute of Governance and Development (BIGD) Research Director Munshi Sulaiman, and Danish Ambassador to Bangladesh Christian Brix Møller attended the event as special guests.
Addressing the export market dynamics, M Masrur Reaz pointed out that 70% of European buyers and 73% of US buyers prefer engaging with eco-friendly businesses, frequently demanding transparency on carbon footprints during production.
Observing that countries like Vietnam and India have already advanced in similar initiatives, Reaz stressed that Environmental, social, and governance ESG compliance has become an indispensable component of global market competitiveness.
Danish Ambassador Christian Brix Møller remarked that such proactive transparency and sustainability initiatives will significantly strengthen the manufacturing sector's competitive edge.
BGMEA President Mahmud Hasan Khan announced that the association intends to make ESG compliance mandatory for all member factories, adding that discussions will be held with BKMEA on the matter.
He also noted that any potential extension of Bangladesh's Least Developed Country (LDC) graduation timeline would provide critical breathing room to accelerate such preparatory transitions.
