In Bangladesh, which has a steady credit rating and is considered a rising star among so-called frontier economies by many economists, fuel shortages are fomenting widespread angst and bloating import bills. The usually robust garment industry, accounting for more than 80% of exports, faces an energy crunch at home and a slowdown in orders from abroad. Bangladesh has sought IMF assistance, which officials in Dhaka say is preemptive and not to be equated with the bailout funds sought by Sri Lanka and Pakistan.
The government recently announced as much as 52% rise fuel oil prices, a record jump for the nation, sparking street protests. Shortly after, transport operators increased bus fares, adding to public discontent.
The power crisis was made worse after volatile global prices forced Bangladesh out of the spot market for liquefied natural gas cargoes, Hamid said in an earlier interview. The government stopped buying spot LNG cargoes in June.
Bangladesh imported about 30% of its LNG on a spot basis this year, down from more than 40% last year, according to Bloomberg NEF.
Commisioned for Bloomberg