The government’s debt to private power producers has reached Tk 360.74 billion by the end of the last fiscal year, driven by capacity charges for electricity generation that often surpass actual power output. This hefty liability exacerbates the financial strain amid dwindling foreign-exchange reserves, which have plummeted from over $48 billion to below $20 billion. In response, the government allocated Tk 400 billion in the FY2025 budget to cover these charges, with Tk 38.08 billion paid to producers in recent months. Historical payments have amounted to Tk 783.70 billion between FY2019 and FY2023, and Tk 1.05 trillion since 2009. Economists recommend revising or scrapping power-purchase agreements using the “force majeure clause” to mitigate financial pressure. The government is also issuing special bonds to address these dues and seeking additional funds to settle outstanding obligations.
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