Amid escalating tensions in West Asia and disruptions to global energy supply chains, Bangladesh has issued a stark warning about its economic vulnerability, with Prime Minister Tarique Rahman seeking urgent international support to stabilise the country’s energy needs. He is seeking an amount of $2 billion from development partners.
Speaking at the Asia Zero Emission Community (AZEC) Plus Online Summit, Rahman called for a $2 billion fund from development partners, stressing the urgency of the situation. “The situation before us demands urgency, solidarity, and decisive action. Immediate support for the most vulnerable countries must be at the top of our collective agenda,” he said.
“We urge the international community to respond swiftly and positively to this call.”
How is the West Asia conflict impacting Bangladesh’s economy?
The ongoing conflict in West Asia, coupled with disruptions such as the Strait of Hormuz tensions, has triggered volatility in global oil and gas markets, directly affecting energy-import dependent nations like Bangladesh.
Rahman described the crisis as a “stark reminder of shared vulnerability and interdependence”, underlining that “no nation, regardless of its size or strength, can overcome this challenge in isolation.” He also warned that the impact is already visible on Bangladesh’s economy, threatening to derail years of steady growth and development.
Rahman recalls the 1970s oil shock
In a striking comparison, the Bangladesh Prime Minister cautioned that the current situation could surpass the devastating effects of the 1970s oil shock, which stalled development across many economies for years. “Bangladesh is concerned that the scale and consequences of this crisis could exceed those of the 1970’s oil shock,” he said.
He added that since independence in 1971, Bangladesh has made significant progress in poverty reduction and economic growth, but “today, these hard-earned gains are in danger, facing the real threat of reversal.”
What emergency measures has Bangladesh taken so far?
To manage the immediate fallout, Dhaka has rolled out a series of short-term interventions aimed at controlling consumption and stabilising supplies. Rahman noted that these include rationing of government office and market hours, emergency fuel imports and diversification of sourcing, consumption controls, including fuel rationing and limits on retail sales, along with the use of digital tools like the ‘Fuel App’ to prevent hoarding and panic buying.
Despite these steps, the scale of the crisis continues to strain the economy.
Notably, India stepped in to support its neighbour amid the energy crunch. Just last month, New Delhi supplied 5,000 tonnes of diesel to Bangladesh, helping ease immediate fuel shortages.
Why is Bangladesh calling for coordinated global action?
Rahman emphasised that Bangladesh is not alone in facing the crisis, particularly among Least Developed Countries (LDCs) that are disproportionately affected by energy shocks. “This moment calls for decisive and coordinated global action to contain the impact of the ongoing energy crisis, particularly to protect vulnerable countries,” he said.
He pushed for a forward-looking Asian response focused on strengthening regional energy security, addressing immediate supply disruptions, along with building long-term resilience.
Meanwhile, AZEC Plus Summit, the high-level summit hosted by Japan, brought together leaders from across Asia, including Malaysia, the Philippines, Singapore, Thailand, Vietnam, and Timor Leste, to address energy security challenges.
Rahman thanked Japanese Prime Minister Sanae Takaichi for convening the meeting, calling it timely as nations grapple with the cascading effects of geopolitical conflicts on energy markets.