Business leaders have expressed apprehensions regarding the government’s plan to eliminate energy subsidies by December 2026, as directed by the International Monetary Fund (IMF). They fear that the proposed strategy of increasing power prices four times a year will burden consumers, hamper industries, and impede economic growth.
Under IMF conditions for a $4.7 billion loan, Bangladesh has committed to terminating gas and power subsidies by 2026. During a recent meeting, Power Division officials disclosed plans to gradually raise electricity prices every three months and phase out all subsidies by 2026. Business leaders argue that removing subsidies may elevate production costs, negatively impacting investments, job creation, and export competitiveness. Moreover, they foresee potential inflation and weakened consumer demand, which could hinder overall economic growth.
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