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New Delhi. The impact of the Middle East War is now clearly visible on Bangladesh’s economy. Fuel shortages, slowing industrial activity, and rising costs have weakened Bangladesh’s economic situation. Especially in Bangladesh, which relies heavily on energy imports, the situation has become so severe that everyone, from the general public to large industries, is facing pressure.

This crisis is putting increasing economic pressure on the Bangladesh government. According to reports, if gas prices remain high, the Bangladesh government may have to spend an additional US$1.07 billion, or more than 10,000 crore Indian rupees, on LNG subsidies in the April to June quarter. To manage the situation, the Bangladesh government has taken steps such as power saving and fuel rationing. Fertilizer factories have been shut down and gas has been diverted to power plants, while shopping malls have also seen their opening hours reduced.

The World Bank has also warned that Bangladesh’s economic growth rate could decline to 3.9 percent in the 2025-26 fiscal year, down from a previous estimate of 4.8 percent. Energy subsidies and rising inflation could further pressure the government’s finances.

Meanwhile, Bangladesh’s ready-made garment industry, considered the backbone of the economy, has been hardest hit. According to industry associations, factory production has declined by 30 to 40 percent, while exports to the US and Europe have fallen by 5 to 13 percent. Businesses fear that if the war continues, competitors like India, Cambodia, and Vietnam could take away market share.

Tariqul Islam, a 53-year-old resident of the capital, Dhaka, who previously ran a clothing business, is now forced to work as a bike ride-sharing operator to support his family. However, fuel shortages have forced him to wait in line for hours to buy petrol. According to him, he now spends a day buying petrol and only two days riding his bike, severely impacting his income.