End LNG reliance or face debt trap: CPD

The new government must end its policy of overemphasising liquefied natural gas (LNG) imports or risk repeating a damaging cycle of financial debt while falling behind on energy transition goals, the Centre for Policy Dialogue (CPD) warned yesterday.

“Bangladesh should gradually shift priority from LNG import to domestic gas exploration to successfully drill 150 gas wells,” CPD Research Director Khondaker Golam Moazzem said at a briefing on the social and economic policies expected of the new government, held at the think tank’s Dhaka office.

He also called on the BNP-led government to withdraw the policy of not imposing any value-added tax (VAT) on LNG imports in the next budget.

Criticising the BNP’s election manifesto for proposing higher LNG imports and expanded LNG infrastructure, he warned that such moves would delay domestic gas exploration and pile up the country’s financial burden.

Moazzem described the government’s renewed interest in domestic coal exploration as “the most concerning issue” of all.

Both the BNP’s manifesto and the new government’s 100-day plan list coal extraction as a priority, which he said signals that Bangladesh is moving backwards on energy transition.

The CPD research director urged the government to immediately put a halt to any discussion or initiative on domestic coal extraction.

Instead, he recommended that the government adopt a decarbonisation plan that phases out previously contracted fossil-fuel power plants and commits to no further expansion of coal-based power generation.

END RELIANCE ON EXECUTIVE BRANCH

On governance, Moazzem said Bangladesh has long been “limping on one leg” — relying almost entirely on the executive branch while parliament remains largely sidelined.

“Unfortunately, the executive branch often tries to avoid its accountability and responsibility to the parliament,” he said.

The policy expert urged the new government to make full use of the national parliament, strengthen parliamentary standing committees, and transform the bureaucracy from a “law-and-policy-making agency” into an effective implementing body.

He also flagged decentralisation as essential, noting that government decision-making and development activities should be pushed beyond Dhaka “through participatory local government elections”.

REMOVING MANSUR AS GOVERNOR A “WEAK STEP”

Moazzem also criticised the government’s recent decision to remove Ahsan H Mansur as the central bank governor, stating that excluding a figure of his experience and competence was a “weak step”.

Even if political differences existed, he said the appointment and removal process lacked transparency, and that “better options” were available.

The CPD research director called for a transparent, criteria-based process for appointing the Bangladesh Bank governor, including an independent selection committee that would recommend candidates to the government.

There are no defined selection criteria for appointing a governor at present.

INVESTMENT, TAX, LABOUR REFORMS

To boost investment, Moazzem recommended that the Ministry of Commerce and Bangladesh Investment Development Authority (Bida) operationalise a unified digital interface by integrating existing databases.

In addition, regulatory bodies – such as the National Board of Revenue (NBR), Department of Inspection for Factories and Establishments (DIFE), and Registrar of Joint Stock Companies And Firms (RJSC) – should develop a common document management framework to cut duplication in business licensing.

The NBR should move away from a blanket flat corporate tax rate for listed companies and instead link tax benefits to performance indicators such as capital investment, export growth, or employment generation, he added.

He suggested that NBR establish an expert committee comprising tax professionals, chartered accountants, and business representatives to regularly review and update the list of allowable deductions, expenditure caps, and definitions related to taxable income, ensuring they reflect current business realities.

He also called on the government to prioritise the recovery of assets laundered over the past decade through stronger legal, investigative, and diplomatic efforts.

On labour rights, Moazzem recommended creating a dedicated government fund to protect workers from abuses by state-owned or state-controlled enterprises, and mandating six months of fully paid maternity leave across all sectors.

He also proposed that the government’s “Family Card” scheme prioritise households with working children, with cash transfers set above a child’s average monthly earnings, on the condition that the child returns to school.

The Ministry of Social Welfare should lead implementation of the scheme, supported by NGOs for identification and monitoring, he added.

DIGITAL INTEGRATION FOR FARMERS, EXPATS

For migrant workers, Moazzem called for a single digital compliance framework integrating certification, emigration clearance, and recruitment oversight, led by the Bureau of Manpower Employment and Training and the Ministry of Expatriates’ Welfare.

The framework should include mandatory digital skill verification linked to passports, visas, contracts, and financial records.

For agriculture, he recommended consolidating the national farmer database, Farmer Smart Card, and the proposed Farmer Card into one unified digital registry connected to subsidies, credit, insurance, procurement, and extension services.

An integrated risk protection system merging subsidised credit, loan relief, and nationwide crop, livestock, and fisheries insurance should also be established, he added.