The issue of unpaid bills for electricity import from India, amounting to Tk 60 thousand crores as of the end of last January, has put significant strain on Bangladesh’s finances. The government’s efforts to address this challenge, including releasing subsidy funds and issuing special bonds, have been insufficient to cover the outstanding liabilities.
Despite the Ministry of Finance’s release of Tk 1 thousand crore in March, the remaining subsidy allocation for the current financial year remains unsettled. The escalating demand for electricity subsidy, coupled with the inability to meet it with existing funds, underscores the need for sustainable solutions to manage the power sector’s financial burden.
The government’s commitment to reducing subsidies as per the IMF’s recommendations contrasts with the reality of increasing subsidy demands in the upcoming budget. While efforts to raise electricity prices aim to alleviate subsidy pressure, they have not been sufficient to offset the rising demand for subsidies.
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