Bangladesh may see commodity price rises for Mideast crisis

Finance and Planning Minister Amir Khosru Mahmud Chowdhury forewarns that prices of essential commodities may rise in Bangladesh due to ongoing global supply-chain disruptions triggered by the Mideast mayhem.
"Due to the supply-chain crisis, not only fuels but other commodities will also get pricier in Bangladesh," he told reporters Sunday after a National Multi-Stakeholder Consultation Workshop on LDC- graduation preparedness at the NEC auditorium.
The minister makes it clear that this is not a problem affecting only Bangladesh but a global challenge, noting that the ongoing energy crisis is already casting shadows over the national economy, although the government managing the situation so far. "The prices of food items will go up as a consequence of this crisis."
He also acknowledges growing fiscal pressure on the government, pointing out that while other countries have significantly raised fuel prices, Bangladesh has refrained from doing so - a decision which is straining state finances.
"How long we can keep fuel prices unchanged is difficult to say with certainty. We are purchasing fuels using state treasury funds, which will ultimately be a loss for the people," the finance minister said, adding that any decision on fuel pricing will be taken with public welfare as the foremost consideration.
On the question of LDC graduation, he ruled out any immediate move in that direction, saying that the BNP government has been working in line with its electoral manifesto to strengthen the economy.
Bangladesh, Khosru emphasises, will consider LDC graduation only after achieving adequate economic preparedness.
The Finance and Planning Minister says the current economic situation is in a "multidimensional crisis," warning that it goes beyond the energy sector to impact food, commodities and supply chains, heightening risks of further price pressures.
He mentions that sustained external shocks are placing continued strain on public finances, requiring constant policy adjustments, while the government, in a "war-like" situation, effectively stabilising and reviving the economy.
The Economic Relations Division (ERD) arranged the event jointly with the United Nations Office of the High Representative for the Least-Developed Countries, Landlocked Developing Countries and Small Island Developing States (UNOHRLLS) and the UN Resident Coordinator Office in Bangladesh.
The event featured the Graduation Readiness Assessment report which highlights persistent challenges in export competitiveness, fiscal capacity, and financial-sector stability, raising concerns over the country's overall readiness for a sustainable post-LDC transition.
Ministers, advisers, policymakers and experts from private sector attended the event chaired by ERD Secretary Md. Shahriar Kader Siddiky.
Dr M. A. Razzaque and Dr Daniel Gay delivered a presentation on the assessment report developed by UNOHRLLS, which reveals that Bangladesh has met all three eligibility criteria-GNI per capita, Human Assets Index (HAI) and Economic and Environmental Vulnerability Index (EVI).
However, it warns of "significant readiness gaps" that could undermine a sustainable transition.
The presentation has identified a number of external and domestic development challenges Bangladesh had faced since 2017, including Bangladesh's climate-vulnerability, Rohingya refugee crisis, Covid-19 pandemic, recent political transition, Russia-Ukraine war, inflation and balance-of-payments pressures as well as Iran war and the Middle East crisis.
"Under current macroeconomic turmoil and weak economic performance, Bangladesh's pre-existing graduation vulnerabilities could become far more pronounced," says the presentation.

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