BD minister warns of deep crisis in power sector over Tk45,000 crore arrears

BD minister warns of deep crisis in power sector over Tk45,000 crore arrears
Representational Image

Staff reporter

Published: 2026-02-23 16:36:53

Updated on: 2026-02-23 17:10:31

Bangladesh’s power sector is grappling with nearly Tk45,000 crore in outstanding dues to local and foreign companies, posing a major challenge for the newly formed government as it prepares for the upcoming irrigation period and summer season after Ramadan.

Although authorities have outlined plans to ensure uninterrupted electricity supply during that time, officials acknowledge that managing demand amid financial constraints will be difficult.

Current electricity demand stands at around 13,000 megawatts (MW), while the Power Division projects that peak demand could reach 18,000 MW later this year.

Minister for Power and Energy Iqbal Hasan Mahmud Tuku said the government would need to keep gas-, coal- and oil-based power plants running to meet the rising demand.

However, he described the overall financial condition of the sector as critical.

“There is a plan, but the biggest problem is that the power sector has been made totally financially bankrupt. There are huge arrears and outstanding payments. We lack sufficient fuel and will need to import more. The situation is very complicated and must be resolved through active management,” he said, referring to the approach as akin to “disaster management.”

Energy experts cautioned that any significant increase in fuel imports could put additional pressure on the country’s foreign exchange reserves.

They also warned of potential load shedding during the peak summer months if supply falls short of demand.

“Normally, when temperatures rise, we see increased load shedding,” said energy expert Dr Ijaz Hossain.

As of January 2026, Bangladesh’s total installed power generation capacity stands at 28,919 MW, including 136 public and private power plants and import capacity. The country has approximately 4.94 crore electricity consumers. The highest single-day electricity generation was recorded on 23 July 2025 at 16,794 MW.