The government of Bangladesh is set to acquire a $2.3 billion loan from the International Islamic Trade Finance Corporation (ITFC) to tackle the ongoing energy and forex reserve crisis. The loan will be utilized to stabilize imports of refined fuel oil, gas, and liquified natural gas (LNG) while alleviating pressure on forex reserves. ITFC, a member of the Islamic Development Bank (IsDB) Group, has already agreed to provide financial support.
An initial agreement for $1.4 billion was signed between the government and ITFC for the fiscal year 2023-24, with an additional $900 million loan planned to address any further challenges. The loans will support the importation of petroleum products and meet the growing gas demand. The Ministry of Power, Energy, and Mineral Resources is coordinating with relevant agencies to amend the agreement and secure additional loans. The energy crisis in Bangladesh has been exacerbated by coal shortages and the closure of power plant units.