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Published : 17 Jun 2025, 03:13 PM
The ongoing conflict between Iran and Israel has not yet disrupted the government procurement processes, Finance Advisor Salehuddin Ahmed has said.
He, however, cautioned that an extended war could lead to repercussions in fuel and other sectors.
Following a meeting of the Advisory Council Committee on Economic Affairs and Government Purchase at the Secretariat on Tuesday, Salehuddin said proposals for importing LNG and fertiliser were approved during the session, and current deals had not been affected by the conflict.
“The war has caused a short-term spike in global oil prices, but the LNG cargo we are purchasing now is still being supplied at previously quoted rates,” he said. “If LNG prices go up due to the war, we will see that in future purchases. For now, we are fortunate.”
Israel launched an airstrike early Friday targeting Iranian nuclear facilities and missile factories, killing several top Iranian military officials and nuclear scientists. A cycle of retaliatory attacks has since escalated between the two countries.
The initial strikes triggered a rise in global crude oil prices and volatility in international stock markets. Analysts have raised concerns that any disruption to Iran’s natural gas production facilities or a closure of the Strait of Hormuz could severely disrupt global energy supplies.
While Bangladesh does not import fuel directly from Iran due to international sanctions, its economy could still suffer if maritime traffic through the Strait of Hormuz is blocked.
Roughly 20 percent of the world’s oil passes through the strategic waterway daily.
Bangladesh sources LNG from Middle Eastern countries such as Qatar and Oman, and any disruption in supply routes through the strait could pose challenges, potentially affecting electricity production and export-oriented industries.
A prolonged rise in global fuel prices could also drive up transportation costs and inflation domestically, officials warn.
Closure of the Strait of Hormuz could hamper Bangladesh’s apparel exports by delaying deliveries, leading to significant financial losses.
Asked whether Bangladesh was considering alternative plans to shield its economy if the war drags on, Ahmed said: “We are observing the situation. If the war continues, we will certainly be affected.
“We import a lot of LNG from the international market. This war could impact not just gas prices but also maritime routes, as most commercial vessels pass through the Strait of Hormuz. However, I don’t think the war will last long.”
During Tuesday’s meeting, the committee approved a proposal to purchase one LNG cargo from US-based Excelerate Energy at a cost of Tk 6.12 billion. The shipment is expected to arrive in Bangladesh between Jul 15 and 16.
The committee also approved a proposal to buy 30,000 tonnes of urea fertiliser from multinational firm KAFCO in Chattogram at a price of $383.25 per tonne.
