Trade deal with US undermines energy sovereignty: Debapriya Bhattacharya

Economist and Distinguished Fellow at the Centre for Policy Dialogue (CPD), Dr. Debapriya Bhattacharya, has claimed that the trade agreement signed by the interim government with the United States undermines Bangladesh’s energy sovereignty.

Speaking as the chief guest at a pre-budget shadow parliament debate organized by Debate for Democracy in the capital, Dr. Debapriya criticized the restrictive nature of the deal.

“The trade agreement with the US is compromising our energy sovereignty. While the new government claims it will not pursue country-specific foreign policies, this agreement dictates from whom we can purchase oil. Requiring permission for such decisions is a direct hit to our independence,” he said.

Dr. Debapriya, who also serves as the Convener of the Citizens' Platform for SDGs, Bangladesh, expressed deep frustration over stagnation in economic reforms.

He also questioned why the International Monetary Fund (IMF) has delayed the release of loan instalments and why the reform proposals prepared during the final days of the interim government have not been implemented.

“A white paper on the economy has been prepared, and various sector-specific reform books have been published. It seems these proposals are now destined for the museum,” he remarked, urging the government to quickly form the reform commission promised in the BNP's election manifesto.

Describing the energy and banking sectors as the "two lungs" of the economy, the economist noted that the country is struggling to breathe due to both these vital sectors being beset by crises. He characterized Public Financial Management (PFM)—covering revenue, expenditure, and deficit financing—as the "heart" of the economic system.

He criticized the energy policies of the 17 years mostly under the Awami League, labeling them "controversial and misleading."

“Despite having domestic gas reserves, we failed to invest. By making Bapex (Bangladesh Petroleum Exploration and Production Company Limited) a 'toothless tiger' and prioritizing an import-dependent energy policy over production, we have allowed vested interests to thrive,” Dr. Debapriya added.

The CPD Fellow also raised concerns regarding the financial feasibility of various "cards" (family cards, farmer cards, sports cards) planned by the new government. He advised that the government must be willing to take a "short step back" to prepare for a "long jump," suggesting that the upcoming budget should clearly reflect where the government wants the economy to be in five years.

Dr. Debapriya offered three specific recommendations for the energy sector: ensure that taxes collected from the poor do not subsidize the wealthy, prioritize investment in domestic energy exploration, and ensure energy imports at affordable rates.

Chairman of Debate for Democracy, Hassan Ahmed Chowdhury Kiron, who presided over the event, stated that the current government inherited a fragile economy now further strained by prolonged conflict in the Middle East.

He noted that energy supply disruptions are hampering production and driving up the cost of living.

In the debate competition titled "Economic security can be achieved by ensuring energy security in the next budget," the team from Jatiya Kabi Kazi Nazrul Islam University defeated Stamford University Bangladesh.