The Power Development Board (PDB) is grappling with a significant financial deficit, losing an average of Tk 3,600 crore each month due to electricity sales. The government’s plan entails gradually increasing electricity prices 11-fold by January 2027 to offset the deficit in the Power Development Board’s finances. However, the Ministry of Finance has allocated only Tk 35,000 crore for this purpose, leaving a substantial deficit. Moreover, there is an outstanding subsidy of Tk 30,737 crore from the previous fiscal year, exacerbating the challenge of meeting the PDB’s deficit solely through subsidies. Consequently, a plan has been devised to gradually increase electricity prices and eliminate subsidies.
The government is under pressure to reduce subsidies, particularly as part of conditions for loans from the International Monetary Fund (IMF). To address this, a medium-term plan has been proposed, aiming to increase electricity prices elevenfold by January 2027 to offset the deficit. Notably, price hikes are proposed during winter months, from November to February, at a rate of five % each time.
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