Finance Minister Amir Khosru Mahmud Chowdhury has said the country’s overall economic situation is currently not in good shape, adding that there is no immediate solution to the ongoing gas and electricity crisis.

He made the remarks at an event organised by the American Chamber of Commerce in Bangladesh (AmCham) at a hotel in Dhaka on Sunday (August 16).

Amir Khosru said that even if effective initiatives are taken now to address the energy and power crisis, it could take at least two years for the country to receive their full benefits. Therefore, he said, expecting a quick resolution to the crisis would not be realistic.

The finance minister said Bangladesh has sufficient electricity generation capacity. However, due to weaknesses in the transmission system, a significant portion of the electricity generated cannot be utilised effectively.

He said work is underway to develop a sustainable and balanced energy mix combining gas, coal and renewable energy to address the situation.

The finance minister also spoke about instability in the banking sector. He said that dealing with high levels of non-performing loans and other financial challenges would require greater emphasis on bank restructuring and alternative financing mechanisms rather than relying solely on government support.

He stressed the need for structural reforms and expanded alternative financing opportunities to restore stability to the banking sector.