Abdul Awal Mintoo

The country lacks a business-friendly environment. Industrial capacity is declining, and the economy is becoming stagnant and heading towards a crisis. The depreciation of the local currency (Taka) against the dollar is disrupting the import of essential raw materials for industries. Labour unrest is increasing, and one after another, factories are shutting down.

The production sector’s crisis shows no signs of abating. In such a dire situation, the government intends to raise gas prices for industries. Two years ago, industrial gas prices were increased by 150 to 178 percent. Last year, there was another slight increase.

However, even after two years, the gas crisis in industries persists. Citing the need to boost supply, the government now plans to raise gas prices by two and a half times. This proposal suggests increasing the price per unit from Tk30.75 to Tk75.72.

Industries have two types of gas connections: one for operating boilers and another, known as captive connections, for self-generated electricity in large factories. Currently, the per-unit gas price is the same for both connections. According to Petrobangla’s proposal, existing customers would pay the new rates for gas usage exceeding their approved load. Industries with new connection commitments would pay the old rates for up to 50 percent of their approved load, with the new rates applying beyond that.

Meanwhile, due to the rising dollar rate, entrepreneurs are unable to import necessary raw materials, leading to increased product prices and market instability. This industrial stagnation is contributing to growing social unrest.

To curb inflation, the Bangladesh Bank has raised interest rates on loans, which is already having a negative impact on the economy. Workers, unable to afford essential goods, are taking to the streets with various demands, leading to regular labour unrest. An interim government finds it challenging to make essential goods affordable for consumers.

In this situation, instead of increasing utility charges for industries, it’s imperative to promptly transfer power to a political government through necessary reforms to overcome the crisis. Therefore, a fair and acceptable election is urgently needed.

The author is a former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).