Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said gas and electricity shortages are currently a major challenge for the country’s industrial sector. In a statement sent to the media on Tuesday, he assessed the first six months of the BNP government led by Prime Minister Tarique Rahman, saying the energy problems cannot be resolved in the short term because they were inherited from the previous government.

Hatem said the prime minister and energy minister have taken several immediate initiatives and consulted business organisations and leaders on possible solutions. He said the government has also pledged a long-term solution to the energy crisis. BKMEA welcomed central bank measures aimed at refinancing sick, partially closed and closed factories, as well as a decision allowing certain exporters to import raw materials duty-free against bank guarantees.

He said the government imported some LNG from the international spot market. According to the finance minister, a new floating LNG terminal would take about two years to install. The government has decided to establish another FSRU and expects the gas shortage could be resolved within two years. Hatem added that banking-sector problems remain unresolved and overall law and order has somewhat deteriorated.