Energy Crisis Hits Pakistan and Bangladesh, Fuel Prices Soar

The global energy crisis has hit Pakistan and Bangladesh hard, causing widespread disruptions in industries such as textiles and power generation.

In Bangladesh, over 2,000 kilometers away from Pakistan, the shortage of liquefied natural gas (LNG) has led to blackouts and factory shutdowns. The country draws more than 40% of its electricity from imported LNG, with Qatar being the main supplier. However, disruptions in deliveries have forced Dhaka to import costlier cargoes on the spot market.

Garment factories are particularly affected, with 55% of knitwear factories reporting canceled or cut orders due to gas and power shortages since late August. Factory owner Alvi Islam had to source fabric from China after a boiler was ruined in mid-process by low gas pressure, leading to a delay in production.

In Pakistan, the government has introduced a fuel subsidy scheme to ease the sharp rise in fuel prices. However, vehicle owners have complained that the program is not working smoothly, with many struggling to register for the subsidy. Petrol has risen to around Rs391 ($1.41) per liter and diesel to Rs421 ($1.52), putting a heavy burden on poor people.