In the past 16 years, Bangladesh’s power sector has expanded significantly, with the number of power plants and production capacity both increasing fivefold. However, the cost of electricity production has also risen sharply, leading to massive losses for the Power Development Board (PDB). From 2008-09 to 2023-24, PDB incurred over Tk2.02 lakh crore in losses, with the highest losses recorded in recent years—Tk51,300 crore in 2022-23. The government has provided substantial subsidies to cover these losses, totalling Tk1.38 lakh crore. Electricity prices are planned to rise incrementally 11 times to reduce the subsidy burden by January 2027. This measure aims to address the financial shortfalls and eliminate subsidies over time.
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