Bangladesh, Nepal hold talks on increasing cooperation in power

Dollar and Taka crisis: Power sector grapples with huge dues

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Banks are not able to provide dollars to repay the dues of foreign companies in the power and energy sector. Bangladesh had reserves of more than 48 billion US dollars, which has reduced to 25 billion US dollars. According to the International Monetary Fund (IMF) formula, the reserves are US$20 billion.

Experts blame dependence on imports for the crisis in the power and energy sector.

He found that instead of emphasizing on gas extraction, the government has adopted the path of import.

There are public and private sector power plants in the country. PDB buys all the power.

According to the organization’s last estimate in December, they owed private power plants about Tk 250 billion. These dues have been consolidated as the Finance Department is not providing money as subsidy.

After failing to provide the subsidy money, the finance department is now issuing bonds (financial items like savings certificates), electricity and fertilizer dues will be paid with the money. Meanwhile, bonds worth Tk 20 billion have been issued to clear the dues of power plants.

Speaking to Prothom Alo, Imran Karim, former president of Bangladesh Independent Power Producers Association, an organization of private power plant owners, said the bond work was progressing slowly. Out of 120 billion taka, only 20 billion taka bonds have been given. The remaining amount should be given soon. Despite this, half the outstanding balance will remain.

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