http://nation.ittefaq.com/issues/2008/05/08/news0181.htm
New Nation, Dhaka, Bangladesh
Thursday, May 8, 2008
Gas denial to harm growth
THE decision not to give new gas connections to industries and even
households, comes as a shock to say the least. The decision has been
prompted by a concern about the ability to supply gas to new users
amid its dwindling availability and production. There can be no
denying that the time is not far away when the gas wells would go dry
if new reserves are not added and exploited. But gas depletion will
occur some time around 2011 even under use at the current rate by the
existing users.
Thus, the only course would be going all-out to find more gas and
increase production from existing reserves till then. Hopefully, by
this time the scenario would change with the finding of more gas. But
what has been done now in a too scary anticipation of gas running out,
is a too drastic move. In a bid to conserve gas, economic growth
cannot be given a goodbye. The Bangladesh economy needs to grow at 6
to 7 per cent a year to keep problems of unemployment, income and
poverty at manageable levels. Investment operations, specially in
industries, make that growth possible.
But growth could come down below even the average minimum of 5 per
cent experienced in the last two decades if gas supply to new
industries remains prohibited. The worst would be its effect on
foreign direct investments (FDIs). Foreign investors would get a very
wrong signal about Bangladesh from this. FDI is an area where
goodwill-- lost once-- is very difficult to regain. Thus, the decision
of no gas supply and gas rationing may prove to be counterproductive.
The government needs to review this very risky decision and instead
take steps immediately to ensure alternative sources of energy for
industrialisation and income generation.
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