Bangladesh’s power and energy sector stands at a critical juncture, and Iqbal Hasan Mahmud Tuku is stepping into one of the most technically complex and politically sensitive ministries in government. His candid admission that the sector is “very difficult to solve” reflects not weakness but the scale of the structural challenges that have accumulated over years.
As he prepares to take charge of the Ministry of Power, Energy and Mineral Resources, Iqbal Hasan Mahmud Tuku has signalled that he intends to approach the task with caution, review and “homework”. That language is significant. The sector is burdened by rising capacity payments, mounting outstanding bills, dependence on imported fuel, foreign exchange pressures and persistent questions about procurement transparency. Quick fixes are unlikely. Sustainable reform will require institutional discipline, contract scrutiny and long-term planning.
His measured response to the National Review Committee’s recommendation to cancel the Adani Group power purchase agreement suggests that decisions will not be made impulsively. The agreement has drawn criticism over alleged financial risks and structural imbalances. Any review must be evidence-based and legally sound, as abrupt termination without preparation could trigger international arbitration or financial penalties. A careful reassessment of large-scale power contracts may become one of the defining tests of his tenure.
Iqbal Hasan Mahmud Tuku has previously overseen the ministry, giving him institutional memory at a time when continuity may be crucial. His reference to an earlier framework where a majority of generation capacity remained under government control reflects a broader debate within Bangladesh’s energy policy: how to balance state leverage with private sector participation. Public-private partnerships expanded generation capacity rapidly, but critics argue that deviations from transparent procurement processes have contributed to cost escalation and rent-seeking.
Electricity pricing remains politically sensitive. Production costs have risen due to imported liquefied natural gas, coal and oil, while consumers face higher tariffs and growing public debt linked to subsidies. Iqbal Hasan Mahmud Tuku’s observation that balancing affordability with financial sustainability cannot be achieved within a single five-year term is a realistic assessment. Structural reform in the energy sector requires consistent policy direction beyond electoral cycles.
The broader economic implications are equally pressing. Industrial growth, foreign investment confidence and macroeconomic stability are closely tied to reliable energy supply. Persistent shortfalls or unpredictable pricing can undermine competitiveness. At the same time, excessive fiscal burdens from power sector liabilities constrain public spending in other priority areas.
Iqbal Hasan Mahmud Tuku’s political experience and prior exposure to the ministry provide him with an understanding of both technical and administrative dimensions of the portfolio. However, experience alone will not be sufficient. The coming months will test whether the government can move from reactive crisis management to strategic reform.
If his pledge to conduct a thorough review translates into transparent policy recalibration, improved procurement discipline and rational pricing mechanisms, the ministry could begin to restore credibility. If not, the energy sector risks remaining trapped between rising costs and political hesitation.
Bangladesh’s energy future now rests on whether the new leadership can convert “homework” into durable structural change.
