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Published : 11 Jun 2026, 08:30 PM
Finance Minister Amir Khosru Mahmud Chowdhury has proposed to allocate Tk 173.45 billion for the power and energy sectors in the upcoming 2026-27 fiscal year,
The amount is Tk 3.93 billion higher than the allocation for the outgoing fiscal year.
In his budget speech in parliament on Thursday, he said that the allocation is based on the importance of the power and energy sectors, which have been struggling heavily since the Iran war.
The minister also highlighted the government's plans to deal with the sectors’ high subsidies, import dependence and the impact of the West Asia crisis.
According to him, the cost of electricity generation has increased due to the Awami League government's “unplanned policies and its unlimited corruption, mismanagement and irregularities”.
He also pointed to capacity charges in the power sector.
"The burden of additional costs in importing and purchasing power has fallen on us due to unilateral and controversial conditions attached to several mega projects carried out during the Awami League government," said the minister.
The amount of annual subsidy in the power sector has exceeded Tk 400 billion due to these factors, he said.
Amir Khosru said an uninterrupted and quality power supply is not yet possible due to the flaws in the policies adopted during the Awami League regime.
He informed that parliament that the BNP government has taken initiatives for short, medium and long-term reforms in the power generation, transmission and distribution systems.
The government is also working to prevent irregularities, shut or modernise inefficient and old power plants, generate electricity at low cost, and review existing capacity charges and power purchase agreements, he said.
In addition to modernising the transmission and distribution network, work is also underway to reduce system losses, Amir Khosru said.
The energy sector, he said, is also facing risks owing to “long-standing wrong-headed policies, mismanagement, and excessive import dependence."
The minister also highlighted other plans to improve both sectors while ensuring energy security, with special focus on renewables.
