Economist and Centre for Policy Dialogue (CPD) Distinguished Fellow Dr Debapriya Bhattacharya has said that a recent trade agreement signed between Bangladesh’s interim government and the United States raises serious concerns over the country’s energy sovereignty.
He made the remarks as the chief guest at a pre-budget shadow parliament debate organised by Debate for Democracy in Dhaka on Saturday.
Dr Debapriya argued that provisions in the agreement restrict Bangladesh’s autonomy in making decisions related to energy imports, particularly oil procurement.
“The agreement is affecting our energy sovereignty. Although the government says it will not follow country-specific foreign policies, the deal effectively influences from where we can purchase oil. Needing permission for such decisions undermines independence,” he said.
The CPD fellow also expressed concern over the pace of ongoing economic reforms, saying that key policy proposals developed during the final phase of the previous interim administration have not been implemented.
He questioned delays in IMF loan disbursements and said reform initiatives, including published policy papers and sectoral recommendations, appear to have lost momentum.
“A number of reform documents have already been prepared, but it feels like they are now being shelved instead of implemented,” he said, urging renewed focus on reform commitments outlined in BNP’s election manifesto.
Describing the energy and banking sectors as the “two lungs” of the economy, Dr Debapriya warned that both are under pressure, contributing to broader macroeconomic instability.
He also referred to public financial management - covering revenue, expenditure and deficit financing - as the “heart” of the economic system.
He criticised past energy sector policies over the last decade and a half, calling them inefficient and influenced by vested interests, and said inadequate investment in domestic gas exploration has increased reliance on imports.
He further suggested three priorities for the energy sector: ensuring equitable use of public funds, increasing investment in domestic energy exploration, and securing energy imports at competitive prices.
Debate for Democracy Chairman Hassan Ahmed Chowdhury Kiron, who presided over the programme, said the current administration has inherited a fragile economy further strained by global geopolitical tensions, especially in the Middle East, which are pushing up energy costs and inflation.
The event also included a debate competition on the motion “Economic security can be achieved by ensuring energy security in the next budget,” where Jatiya Kabi Kazi Nazrul Islam University defeated Stamford University Bangladesh.
