DHAKA: Bangladesh and the United States discussed ways to increase US investment, expand bilateral trade and create a more business-friendly environment during a meeting between Commerce Minister Khandker Abdul Muktadir and US Ambassador to Bangladesh Brent T. Christensen. The meeting was held Monday at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) office in Dhaka. The two sides discussed expanding bilateral trade, cooperation in the energy sector and recent policy reforms, according to information released following the meeting.

US ambassador stresses transparency in major projects

During the meeting, Ambassador Christensen highlighted the importance of maintaining a transparent and competitive environment for major infrastructure projects. Speaking about a floating liquefied natural gas (LNG) terminal, or FSRU project, the ambassador said greater transparency and open competition would help strengthen the confidence of foreign investors.

He also said US companies are interested in working in Bangladesh and emphasized the importance of ensuring fair opportunities for competition. Commerce Minister Khandker Abdul Muktadir welcomed US investors and said proposals from US companies demonstrating the ability to deliver an FSRU within the shortest possible timeframe would receive priority consideration.

Import policy also discussed

The meeting also covered Bangladesh’s new import policy. The US ambassador welcomed several positive changes in the new policy but said some provisions could be made more business-friendly. The commerce minister said the import policy is an ongoing process and that necessary reforms are being reviewed regularly in line with market conditions and economic realities.

The two sides also discussed the removal of an earlier requirement for foreign companies to appoint local agents when purchasing strategic equipment. The minister said allowing direct engagement with manufacturers has improved transparency in the procurement process and reduced the influence of intermediaries.

Energy cooperation

Energy cooperation was another key issue discussed at the meeting. Ambassador Christensen described Bangladesh’s agreement with international energy supplier Gunvor as a positive development. The commerce minister said the government would continue to give the highest priority to protecting Bangladesh’s national interests in all such arrangements.

Officials from Bangladesh’s Ministry of Industries, Ministry of Commerce and the US Embassy also attended the meeting. Both sides expressed hope that regular discussions would help further strengthen the commercial relationship between Bangladesh and the United States.

Shibbir Ahmed, Washington DC: Nearly 600,000 jobs in Bangladesh could be at risk if the economic fallout from the ongoing Middle East conflict persists, according to a World Bank assessment. The warning comes as Bangladesh faces rising fuel prices, severe gas shortages, disruptions to fertilizer production and growing pressure on industries and household incomes.

The World Bank’s mid-June assessment, prepared as part of a proposed Contingent Emergency Response Project, said the conflict could significantly weaken Bangladesh’s economic recovery and slow the pace of poverty reduction.

The assessment estimates that the number of people expected to move out of poverty in 2026 could fall from around 1.7 million to about 500,000 because of the conflict. Bangladesh had already been facing rising poverty. The World Bank estimated that the number of poor people increased by about 1.4 million in 2025, as weak job creation, slow growth in labor incomes and persistent inflation reduced the poverty-reducing impact of economic growth.

Energy crisis adds to pressure

The energy sector is among the areas most severely affected. Natural gas accounts for more than half of Bangladesh’s primary energy supply, while domestic gas production has fallen significantly from its 2016 peak. The country also relies heavily on the Middle East for imported energy, sourcing about 60–65% of its crude oil and 55–60% of its LNG from the region.

The conflict has disrupted LNG supplies, with five of Petrobangla’s six LNG supply contracts reportedly placed under force majeure. Spot LNG prices have risen to around $24–$28 per million British thermal units (MMBtu), more than double their previous level.

Higher energy costs are also expected to put additional pressure on inflation. The World Bank assessment said that passing higher energy prices on to consumers could increase inflation by more than 0.5 percentage points, with further effects on food and non-food prices.

Fertilizer production disrupted

Bangladesh’s agriculture sector is also vulnerable to the crisis. Gas shortages have forced five of the country’s six domestic urea fertilizer plants to suspend production, while international urea prices have increased by around 30%. The World Bank warned that fertilizer prices could potentially rise much further if the disruption continues, increasing production costs for farmers and putting additional pressure on food prices.

Smallholder farmers, who represent a significant share of Bangladesh’s population, could be particularly exposed to higher input costs and supply disruptions.

Industries and workers under pressure

The energy crisis is also affecting industrial activity. Factory operating hours, production and new industrial gas connections have reportedly been affected, while some businesses have faced rising operating costs.

The World Bank’s projection of nearly 600,000 jobs at risk reflects the broader economic consequences of higher energy costs, supply disruptions, weaker production and inflation. Economists have also pointed to signs of the crisis already appearing in the labor market, including factory closures, reduced working hours and job losses.

Government finances face additional strain

The crisis could also increase pressure on Bangladesh’s public finances. Higher energy subsidies could substantially increase government expenditure, potentially reducing the fiscal space available for social protection and emergency programs, according to the World Bank assessment.

The World Bank has already approved $1.1 billion in emergency financing for Bangladesh to help protect food security, support vulnerable households and businesses, and address volatility in global fertilizer and fuel markets.

Risk, not a confirmed job-loss figure

The World Bank’s figure of nearly 600,000 should be understood as a projection of potential job losses if the crisis continues, rather than a confirmed number of workers who will definitely lose their jobs.

The final impact will depend on how long the Middle East conflict lasts, global energy and fertilizer prices, supply conditions and Bangladesh’s ability to manage the economic shock. For Bangladesh, however, the warning highlights the vulnerability of an economy already struggling with inflation, weak job creation and limited fiscal space.

Source: World Bank assessment on Bangladesh’s proposed Contingent Emergency Response Project.