Ahead of the month of Ramadan, the LC margin and credit limit will be temporarily lifted on the import of 4/5 products, including daily necessities, especially chickpeas, sugar, wheat, and edible oil, said Bangladesh Bank Governor Dr. Ahsan H. Mansur.

He said these things after a meeting held on inflation and commodity prices at the Finance Ministry conference room at the Secretariat on Thursday (November 7) afternoon.

The central bank governor said, there has been a lot of discussion on the supply chain. We have discussed the price of every daily commodity. In this, the government has decided that the duty on most daily commodities has been reduced to zero. We have made some other decisions. We had already lifted the LC margin. Now we will issue a circular next Sunday that no margin should be given on daily commodities. We had lifted it and left it to the banks. However, we will encourage banks not to charge LC margin on daily necessities until the next Ramadan. This is a significant decision that we will make.

We have to be patient for the country's economy to stabilize. It will take 12 to 18 months to stabilize, said Dr. Ahsan H. Mansur.

He said that inflation rose to 10 percent in October. This could be due to various reasons including floods. However, rice prices are at a tolerable level. He also said that if the prices of energy products in the international market decrease, it will have an impact on the country. The liquidity crisis of the bank has already started to ease. Moreover, dollars are available in the bank. He also said that if no one gives dollars at this time, he will inform them.

Stating that the market is being monitored constantly, he said that no one can do anything irrationally. I have seen supply increase naturally and not by threatening people during the 1/11. He also commented that during this time, people will have to leave space on the sidewalks for walking.

With the country's gas sector on the brink, the crisis could take a more dire shape. Especially by the year 2026, many people are looking at the threat of catastrophe. There are not many options available to avert disaster, including pipeline gas from Bhola.

Energy experts consider increasing LNG imports to be a dangerous option. As the skyrocketing price is a barrier, there is no scope to increase the amount of import at will. A maximum daily import of 900 million is possible with two FSRUs. A new FSRU will take at least 18 months after finalizing the tender. In other words, there is no way to increase LNG imports till 2026, even excluding the price issue.

Sylhet gas field company is getting gas per cubic meter for Tk 1, the cost of importing the same amount of gas (LNG) is Tk 71. In other words, if imported, the price is 70 times higher, Bangladeshi consumers are not in a position to pay that price.

According to Petrobangla sources, the rate of 1 taka from the state-owned company Sylhet Gas Field Company Limited, 1.25 taka from Bangladesh Gas Field Company, and 4 taka from Bapex. The average price for the combination of gas purchased from multinational companies Chevron Bangladesh and Tallo stands at Tk 6.07 per cubic meter. About 2000 million cubic feet of gas is available daily from these domestic sources. 900 million gas supply from LNG imports. After one-third import, the average price increased from Tk 6.06 to Tk 24.38.

According to Petrobangla sources, the average price of imported gas in the fiscal year 2023-24 is Tk 24.38. And the average selling price of gas was 22.87 taka. Due to this, Petrobangla lost 1.56 taka per cubic meter. In the financial year 2023-24, the price of LNG brought from the spot market fell to 65 taka, which has to be bought for 71 taka in August (2024).

At a time when one-third is reluctant to import, domestic gas fields are running out of reserves, resulting in a steady decline in production. At one time, 2,800 million cubic feet of gas was available daily from domestic gas fields, on November 5, 1972 million cubic feet were produced.

The biggest concern is that Bibiana, the country's largest gas field, is running out of reserves. 50 percent of the domestic supply is coming from that gas field. At one time, 1,350 million cubic feet of gas was produced, but on November 5, only 990 million cubic feet were found. The gas field may run out of reserves by 2026. If the apprehensions come true, the domestic source of gas will decrease by 1000 million. If that amount of gas is imported in excess, the ratio of 6.07 taka will be reduced to half, and the ratio of 71 taka will be doubled.

Petrobangla estimates that the country's gas demand will exceed 4,500 million Cubic feet in the fiscal year 2026-27. Although some want to say that the actual demand for gas is like 4,500. Demand is being understated as a strategy to understate the deficit.

Energy expert Dr. Ijaz Hossain told Barta24.com that he supports the import of LNG, but it should be limited. If we want to provide uninterrupted power supply then the import cost in this sector will be 24 billion dollars. Which is very complicated for our economy. Production is declining as our domestic gas fields are depleting. If we want to maintain the current production capacity of 2000 million cubic feet then at least 10 exploratory wells should be drilled annually.

He said that in 2023, the cost of importing gas by 20 percent will be 22 taka. In 2030, if the import is 50 percent, the price (cubic meter) will be 38 taka. And if 80 percent import is to be done, then the average price will be like 55 rupees. Therefore, there is no alternative to intensify domestic gas production and exploration activities.

Primary energy expert Maqbul E Elahi Chowdhury told Barta24.com, I think the power sector is on the brink of something bigger than just coal. A long period of accumulated laxity has created this situation today. This situation has arisen due to lack of proper focus on domestic oil and gas exploration. Without electricity, life is stagnant, and to provide electricity, fuel is needed. But it cannot be handled by importing LNG.

What are the possibilities in front of Bangladesh?

In response to such questions, Maqbul E Elahi Chowdhury said, digging new wells very quickly, renovating old wells and increasing production. Bibiana wells are producing up to 70 million, with over 10 to 25 million supplies coming from the Rashidpur and Titas gas field wells.

Another task is to stop gas theft. If the theft of one Titas gas is stopped, it is possible to generate 1000 megawatts of electricity with that gas. 3 thousand million cubic feet of gas is being supplied daily. About 8 percent of this is system loss, that is, about 240 million cubic feet of gas is being stolen. Although it is normal to have some technical losses. But 8 percent is not acceptable at all. A maximum of 2 percent system loss can be considered.

Amjad Hossain, former director of Shahbazpur gas field evaluation and development project and former managing director of Bapex, told Barta24.com, "I don't think Bibiana will be closed suddenly." Once producing 1,350 million cubic feet, now it is steadily falling below 1,000. No information is openly given by any party about Bibiana reserves.

According to Petrobangla's latest annual report (2022-23), remaining reserves in July 2023 show 134 BCF. It was then said that Bibiana reserves could increase by 1 TCF. 16 months (485 days) have passed since then daily average remaining reserves have fallen below 600 as FF is extracting gas. 600 days in simple numbers. But that is never possible in case of gas, sudden water and sand can stop the production.

Former MD Amjad Hossain said, I think the initiative should be taken to build a pipe line from Bhola. At the same time, the way Indonesia brings gas from the islands by tanker should be used. Sangu will take it to the platform by tanker and inject it. Gas will be connected to the grid through pipelines using Sangu infrastructure. We need these tankers, later when we get gas in Katubdia and Shallow, the tankers will be used to bring them.

Bhola-Khulna (Via Barishal) pipeline will cost about 7 thousand crore taka. There is a debate whether the pipeline will raise that money or not! In response to such a question, he said, I think there is at least 5 TCF (trillion cubic feet) of gas in Bhola, all the wells drilled in that area have found gas. The distance from Bhola East to Bhola North is 40 km. Gas was found there. As many wells as I did in Hatia Trap, there was no miss, gas was found at Muladi, Begumganj, Sundalpur, Bhola, Sangu. It will be the largest reserve after Bibiana.

Regarding the proven reserves of Bhola, he said, when the Titas gas field was announced in 1967, the reserves were only 1 TCF, now it is said to be 7 TCF. Similarly, the Bibiana gas field took off with 2 TCF, gradually increasing reserves. It is not possible to tell the actual reserves until the gas field is dead.

Cab senior vice president and energy advisor. M Shamsul Alam told Barta24.com, warnings have been given about Bibiana for a long time. By 2026, its production may collapse. But that warning was not heeded. How many tasks need to be done on an urgent basis. Meanwhile arrangements should be made to bring Bhola gas. There is 1 tcf of gas in the roof and gas needs to be brought from there.

Besides, he said that it is impossible to keep the supply normal with imported gas. The economy of Bangladesh is not in a position to pay the price that will be charged if it is imported. Fuel versatility is needed, I think there will be a big change in electric vehicles in five to six years. That's how planning is needed.

Where is the barrier to bring gas to the ground?

150 km pipeline is needed to take Khulna from Bhola to Barishal. It has been estimated to cost about 7 to 8 thousand crore taka. How will the cost of the pipeline rise if the gas reserves are not high? Lenders will ask for his assurance even if he wants to get a loan. In 2004, when the Asian Development Bank asked for a guarantee for the construction of the pipeline, the project collapsed, said Maqbool E-Elahi Choudhury.

When the pipeline is blocked for Tk 7000 crore, importing one cargo of LNG costs Tk. 649 crore (August tender). Which is equal to 1 day demand of the country (3000 million).

2 gas fields have been discovered in Dwip District Bhola. 9 wells have been drilled there, which have a daily production capacity of 190 million cubic feet. But due to lack of demand, only 75 million cubic feet (November 6) has been extracted. Petrobangla is working to drill 15 more wells there.

Chairman of Petrobangla Janendra Nath Sarkar told Barta24.com that it is known to everyone that extraction of gas from wells will end at some point. There is nothing for anyone to do. Now the question is what we are doing about the amount of gas that will be reduced from Bibiana. By 2025 we will increase production by 600 million by drilling 50 wells. 190 million production has already increased by drilling 16 wells. Besides, the project of digging 100 more wells has been taken up.

In these matters, there is great potential for obtaining gas outside and in deep sea and mountain areas. Tenders have been called for offshore gas extraction, which will take 8 to 12 years even if gas is found there. And the work of formulating model PSC (Production Sharing Agreement) for calling for tenders in hilly areas is in progress. Although it is considered certain to get gas from these potential sources, it is too late to add that gas to the system. For that reason, to deal with the period of 2027 and 2028, quick action must be taken now. If not, the people concerned are seeing danger for the country's economy.

Traders are already being affected due to various instability in recent times. Among them, some of the country's media are spreading rumors by targeting various businesses and financial institutions and reporting news with false information and fabricated statements. And as a result of these news, traders are becoming victims of media trials, according to a report in a daily news outlet.

Those involved in the sector said that people are panicking due to the media trials against the country's top businessmen and industrialists, investors, banks and financial institutions. Due to which they are withdrawing deposits from banks and financial institutions. They said that due to the media trials, instability has arisen not only in the banking sector, but also in various sectors of business and commerce.

Those involved believe that the media trials have played a role in the weakening of 10 banks in the recent past. Last Monday, an online portal published a report titled 'Bangladesh Bank appoints receivers in 9 industrial groups' citing sources from the Bangladesh Financial Intelligence Unit (BFIU). Later, several other media outlets published the report in its entirety. However, the BFIU did not acknowledge the authenticity of the news. The stakeholders are viewing the matter as a media trial.

In this regard, BFIU Deputy Chief AKM Ehsan said that BFIU or Bangladesh Bank cannot appoint receivers anywhere. Receivers are appointed by the court. No such decision has been taken by BFIU or Bangladesh Bank. The report on that online portal said that Bangladesh Bank is appointing receivers in 9 industrial groups to recover bank loans. Their main task will be to find collateral and their movable and immovable properties against bank loans and sell those properties to pay off the bank's debts.

The information said that the trial of a person outside the court through the media and social media is called a media trial. According to Article 31 of the Constitution of Bangladesh, no illegal action can be taken that causes damage to the life, reputation and property of a person. In addition, a person cannot be called a criminal until proven guilty. According to the stakeholders, there is no alternative to objective journalism. Journalism is about providing accurate information. Nothing beyond accurate and objective information is acceptable in journalism.

When asked about this, Abdul Awal Mintu, former president of the Federation of Bangladesh Chambers of Commerce and Industry-FBCCI, the apex organization of businessmen, said that investment and employment are damaged by false information. Especially when false news is published in the media, the wrong message is sent to the whole world. This damages domestic and foreign investment. If there is no investment, there will be no employment. Therefore, everyone concerned should be vigilant so that no business or institution faces losses in the media trial.

In this context, former president of Bangladesh Garment Manufacturers and Exporters Association-BGMEA Md. Faruk Hasan said - The garment industry market depends on international buyers. The garment industry is often the victim of a kind of media trial. This is damaging the image of Bangladesh abroad.

To a question, president of Bangladesh Knitwear Garment Manufacturers and Exporters Association-BKMEA Mohammad Hatem said, wrong policies were made by presenting wrong information during the previous government. Therefore, there will be a request to everyone - all the principles of journalism should be followed to stop media trials. One-sided news coverage is tantamount to misreporting. This harms both businessmen and businesses.

In this regard, executive president of BKMEA Fazle Shamim Ehsan said, one-sided news coverage is wrong. Be it in politics or business. If something is published before it is proven, then it is derogatory in family, social, and economic terms. This is not desirable in any way. We do business on the trust of people. Banks, suppliers, local buyers, foreign buyers trust us. We have a brand value. Many people believe it when there is a trial in the media.

Regarding the media trial in the economy, Matiur Rahman Chowdhury, Editor-in-Chief of Dainik Manabzamin, said, "Media trials not only humiliate someone, but also have a negative impact on the economy in many ways. If the target of a media trial is a businessman, it can bring down his business. This hinders domestic and foreign investment. There is stagnation in the economy. Many people become unemployed. The media cannot avoid responsibility. Therefore, the media must also be extremely careful before publishing news. It is the responsibility of the media to find out the real truth.

In this regard, Professor Abu Ahmed, Chairman of the Board of Directors of the Investment Corporation of Bangladesh (ICB), a state-owned investment institution, said that such news should not be published that harms businesses, industrialists and the public. The report is a very sensitive issue. Therefore, businessmen should be more careful in reporting without causing harm through media trials. 

Khwaja Shahriar, the chairman of the newly formed board of directors, has said that there was no irregularity or corruption in the bank during the tenure of Abdus Samad Labu, the former chairman of Al-Arafah Islami Bank (AIBL). He said this in a recent interview with a national daily.

Earlier, on September 3, the central bank dissolved the board of directors of Al-Arafah Islami Bank (AIBL) and appointed an independent board of directors over allegations of involvement with the S. Alam Group. However, the new board of directors did not find any investment in the name or name of the S. Alam Group after auditing the head office and branches.

In that interview, Khwaja Shahriar also said that there is no loan of the S. Alam Group in this bank. Compared to other banks, Al-Arafah is an exception in this regard.

Customers, officials and employees of the bank said that good governance was maintained in the bank during the tenure of former chairman Abdus Samad Labu. Currently, since the formation of the new board of directors, bank officials and employees have been subjected to various forms of harassment. Many officials have been dismissed without notice even though there are no allegations of irregularities or corruption in the bank personally. Many officials are being harassed by being made OSDs in human resources and various zonal offices without any reason just by looking at the employer's reference. Executives and officials of various branches and departments are being forced to resign on the pretext of receiving orders from the Governor of Bangladesh Bank. They are being threatened that they will be dismissed if they do not resign.

Recently, panic has spread among bank officials due to transfers from Chattogram to various distant branches and zones including Dhaka, Rajshahi, Khulna, Bogura, Sylhet. Even officials in their forties and fifties have to run to different parts of the country with transfer orders.

A pregnant female officer who was transferred expressed her anger, saying, 'I have not committed any irregularities in my career. How can I go from Chattogram to Sylhet and work in this condition of my health? If the human resources department cannot be humane, who will we go to?'

In this situation, they expect that the Bangladesh Bank nominated board will return the responsibility of managing the bank to the previous board led by Abdus Samad Labu after the interim responsibility entrusted to them. The current chairman of the board of directors has been forced to admit, 'The second largest Islamic bank in the country is Al-Arafah Islami Bank. That means that this bank already has a very good position in the country. This bank already had fairly good governance. It has been strengthened further.'

It is known that prominent industrialist Alhaj Abdus Samad Labu was elected as the chairman of the bank in three terms by direct vote of the directors of the board of directors. During his tenure, he gave full independence to the management committee in managing the bank. In order to strengthen the internal control of the bank, he made the audit department a stronger department than in the past and provided it with sufficient independence, so that the real picture of the bank emerges. He did not interfere in the normal activities of any department or branch. Rather, during his time, the bank has become a much stronger and more sustainable bank. Due to timely promotions, increments, and bonuses, he is widely popular among the bank's executives, officers, and employees. The bank's corporate and retail customers are also satisfied with the bank's activities during the former chairman's tenure.

After the mass uprising of students and the people on August 5, the newly appointed Governor of Bangladesh Bank dissolved the boards of 11 banks in the country, one of which was Al-Arafah Islami Bank. Although the S. Alam Group has ownership in this bank, they have not played any role in controlling the normal operations of the bank. Like other good banks, this bank has a good reputation in the corporate area. Although there has been a cash crisis in various banks for more than a year, this bank was the opposite. Rather, during this time, Al-Arafah Islami Bank provided cash liquidity support to banks in crisis. As a result, this bank has finally reached a place of trust among its customers. However, although there has been no incident of any irregularities or corruption, a group that owns the bank has influenced the board of directors and transferred hundreds of officers to remote areas without any reason. The board of directors has been told that all these officials are appointed from Patiya and S Alam of Chattogram.

Despite the fact that there was no investment by S Alam Group in the bank or any irregularities during the time of former chairman Abdus Samad Labu, it is necessary to find out whether the agenda of a special group is being implemented through the recent controversial dismissal, transfer, and OSD of executives and officers in the bank. The management and Bangladesh Bank should investigate whether there is any discriminatory behavior against innocent officials. Otherwise, one of the best banks in the country will lose the trust of the people in a short time.