Bangladesh is expected to face an additional subsidy burden of around Tk 42,600 crore in the current fiscal year due to rising global energy costs linked to the ongoing conflict in the Middle East, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament today.

Responding to a starred question from ruling party lawmaker SM Jahangir Hossain (Dhaka-18), the finance minister said the increased subsidy requirement covers four key sectors oil, gas, electricity, and fertilizer for the fiscal year 2025–26.

He noted that preliminary estimates suggest Tk 10,258 crore may be needed for oil, Tk 11,170 crore for gas, Tk 19,821 crore for electricity, and Tk 1,350 crore for fertilizer subsidies.

“The recent conflicts in the Middle East, including Iran, and the instability in the global energy market have increased pressure on government subsidy spending in these sectors,” he said.

Khosru added that the situation poses both immediate and potential risks to the economy, particularly through higher import and production costs, fuel and fertilizer price volatility, transport expenses, inflationary pressure, and foreign exchange management challenges.
He also warned that continued instability in the Middle East could affect Bangladesh’s foreign employment prospects and remittance inflows, as the region remains a key destination for expatriate workers.

Highlighting government measures, the finance minister said authorities are closely monitoring the situation while taking steps such as diversifying energy import sources, exploring domestic gas reserves, ensuring stable supply of essential goods, maintaining cautious foreign exchange management, and seeking alternative labour markets abroad.