ICC Bangladesh President Mahbubur Rahman has warned that Bangladesh will struggle to attract both local and foreign investment unless it ensures a reliable energy supply and predictable government policies, saying the country's prolonged energy crisis is pushing industries towards collapse and threatening the banking sector.
Speaking from the audience at a policy conclave attended by Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud in Dhaka, Rahman said investors were reluctant to commit capital in an environment marked by fuel shortages, power supply uncertainty and inconsistent policies.
"No one is going to invest in this country—either local or foreign—until there is a steady supply of energy, along with predictability of government policies," he said.
He observed that foreign investors often assess a country's investment climate by looking at the performance of domestic businesses.
As existing industries are struggling to survive because of energy shortages, the country is sending a negative signal to potential overseas investors, he added.
Mahbubur Rahman urged the government to allocate state-owned land for large-scale solar and renewable energy projects, saying the country's energy crisis cannot be resolved through rooftop solar alone.
Rahman said the government should shift its focus towards utility-scale renewable energy projects and ensure a transparent process for allocating land to investors.
He argued that rooftop solar, while useful in some cases, would not be sufficient to meet the country's growing industrial energy demand.
"For renewable energy, where will people do it? On the roof? But now rooftop gardening is being promoted. There is no need for solar on the roof then," he said.
he said Bangladesh has ample government-owned land that could be used for solar parks and other renewable energy projects.
"You have plenty of land. Give it to those who want to invest in solar and renewable energy," he said.
The ICC Bangladesh president called for a transparent and direct mechanism for allocating land to investors, arguing that lengthy administrative procedures discourage investment and delay project implementation.
"Without going through different processes, give it to them directly through a transparent process so it can move forward," he said.
He urged the government to make suitable public land available to both domestic and foreign investors within the next six months to accelerate renewable energy development.
"Arrange the various government lands you have and, within six months, allocate them to everyone who wants to invest, whether they are local or foreign," he said.
Rahman said expanding renewable energy generation alone would not be enough unless the government also addressed weaknesses in the electricity transmission network.
He observed that transmission infrastructure had not been developed adequately over the past 15 years, leaving power plants underutilised even when generation capacity exists.
According to him, strengthening the transmission system should go hand in hand with investment in new renewable energy projects to ensure electricity reaches industries and consumers efficiently.
He said timely government intervention could help ease the energy crisis, protect existing industries from further disruption and restore investor confidence.
Rahman added that ensuring a reliable energy supply, supported by adequate transmission infrastructure and transparent investment policies, would be essential for attracting both local and foreign investment and sustaining the country's economic growth.
Rahman questioned the management of the power sector, noting that Bangladesh has an installed electricity generation capacity of more than 28,000 MW, including captive power, yet continues to import electricity from India and Nepal while many domestic power plants remain idle.
He said the government has been paying thousands of crores of taka in capacity charges to power producers despite being unable to supply sufficient fuel or complete the transmission infrastructure needed to evacuate electricity from those plants.
"You have been paying thousands of crores for idle capacity, but we are not getting electricity. Ultimately, the people are paying the cost," he said, urging the government to stop making capacity charge payments for plants that remain unused.
Rahman also warned that the energy crisis is beginning to undermine the country's financial sector, as industries unable to operate at full capacity are facing mounting financial distress.
He said businesses were being punished for circumstances beyond their control and cautioned that the situation would lead to a further increase in non-performing loans (NPLs).
According to him, around 43 per cent of total bank deposits are now exposed to growing risks. Unless the energy crisis is resolved, many businesses will fail to service their loans and eventually become defaulters, putting additional pressure on the banking system.
"They are going to be punished for no fault of their own and will become defaulters as NPLs in banks increase further," he said.
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