Rising oil prices, supply chain disruptions, and mounting debt pressures push Dhaka to seek fresh financial support amid global fallout from the Iran conflict.
Bangladesh has requested a new financial assistance programme from the International Monetary Fund (IMF) as it struggles with the economic impact of the ongoing war involving Iran, which has triggered global energy and trade disruptions.
IMF officials confirmed that discussions are underway with Bangladeshi authorities over the proposed support package, which is expected to focus on stabilising the country’s economy, strengthening financial resilience, and supporting long-term growth. The exact size and terms of the proposed aid have not been disclosed.
The South Asian nation, home to over 170 million people, is heavily dependent on imported energy, sourcing about 95 percent of its oil and liquefied natural gas. The sharp rise in global oil prices following the outbreak of conflict has significantly increased import costs, forcing the government to raise domestic fuel prices and introduce measures to reduce energy consumption, including limiting industrial fuel use.
Beyond energy, Bangladesh’s key export sector—its ready-made garment industry—has also been affected. Shipping disruptions through key Middle Eastern and Red Sea routes have increased transport costs and delayed exports, impacting production schedules and international orders. Some industry officials warn of a potential drop in export demand in the coming season.
The conflict has also contributed to higher raw material prices, particularly for oil-derived products such as plastic resin, further increasing production costs across multiple industries.
At the same time, Bangladesh is facing rising external debt pressures. The country’s total foreign debt has increased in recent years due to infrastructure spending and economic stabilisation efforts. While previously assessed as having a relatively low risk of debt distress, analysts warn that continued global shocks could worsen its financial outlook.
Bangladesh is already under an existing IMF programme agreed in 2023, but the government is now seeking additional support as it navigates the combined pressures of energy shortages, inflation, and trade disruption linked to the Iran war.
Economists note that the crisis is part of a wider global trend, with several developing economies facing renewed debt stress following the COVID-19 pandemic, climate shocks, and rising global interest rates. The IMF has warned that continued instability could push global debt levels toward historic highs in the coming years.
.jpeg)
.jpeg "Sunayen kofofin aljanna guda takwas 8")
0 Comment about the Post: