Bangladesh is currently meeting a portion of its electricity demand through imports from neighbouring India, accounting for 12% of the country’s total electricity supply. In the last fiscal year (2022-23), the expenditure on electricity imports amounted to Tk 9,223 crore. However, projections from the Ministry of Finance suggest that this figure could increase significantly in the current fiscal year (2023-24), reaching approximately Tk 17,586 crore. This represents a potential increase of over Tk 8,363 crore, or more than 90%.
The decision to increase electricity imports is driven by the comparative affordability of imported electricity compared to locally produced electricity. As a result, the government aims to save costs by increasing imports. The revised budget of the Bangladesh Power Development Board (BPDB) for the current fiscal year reflects this, with an estimated expenditure of Tk 88,532 crore on purchasing electricity, compared to Tk 82,778 crore in the previous fiscal year. Of this expenditure, Tk 17,586 crore will be allocated to electricity imports in the current fiscal year, compared to Tk 9,223 crore in the previous fiscal year.
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