The Power Development Board (PDB) in Bangladesh has been facing significant financial challenges, with losses mounting over the past few years. Despite an increase in electricity prices, these losses cannot be fully covered, leading to widening deficits. The Ministry of Finance has been providing subsidies, primarily to private sector rental and Independent Power Producers (IPP), to address the shortfall in purchasing electricity at high prices. However, subsidies for other sectors do not match PDB’s demands, exacerbating the financial gap.
In the financial year 2022-23, PDB incurred a loss of Tk 51,300 crore, with the government allocating Tk 39,534 crore as subsidies to address this shortfall. The Ministry of Finance has not waived the entire subsidy for the previous financial year, mainly directing it towards private sector rental and IPP electricity purchases. Meanwhile, fluctuations in international coal and fuel oil prices have slightly reduced losses for the current financial year, but changes in the dollar exchange rate may lead to increased losses.
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