Friday, 18 September 2026
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Government Faces Challenge in Paying BDT 60,000 Crore Power Sector Arrears, Focuses on Renewables

Paying off approximately BDT 60,000 crore in arrears in the power sector poses a significant challenge for the current government, stated State Minister for Local Government, Rural Development and Cooperatives, Mir Shah-e-Alam. He pledged to maintain power production and expand renewable energy usage despite this substantial financial burden.

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Government Faces Challenge in Paying BDT 60,000 Crore Power Sector Arrears, Focuses on Renewables

Bogra, August 26, 2026 – The immense arrears of approximately BDT 60,000 crore left by previous governments in the power sector have created a significant financial strain for the current government. State Minister for Local Government, Rural Development and Cooperatives, Mir Shah-e-Alam, disclosed this information today in response to journalists' questions at an event in Shibganj, Bogra. He clearly stated that despite this massive financial burden, the government is determined to continue power generation and expand the scope of renewable energy. This announcement comes at a time when ensuring the country's energy security and stable electricity supply is one of the government's top priorities.

State Minister Mir Shah-e-Alam mentioned in his speech that previous autocratic and interim governments had purchased electricity at high prices for rapid power generation but failed to pay for these purchases on time. According to calculations provided by the Ministry of Finance and the Power Division, the amount of these unpaid arrears is approximately BDT 60,000 crore. He emphasized that this huge liability has fallen upon the current people's government, creating a significant strain on the national economy. The current government is considering the grave responsibility of paying off these arrears with utmost seriousness.

Announcing the government's initiatives to clear the arrears, the State Minister said that as a people's government, they are making tireless efforts to settle this massive outstanding debt. At the same time, maintaining normal electricity supply across the country and ensuring uninterrupted power usage in people's daily lives are being given top priority. He further stated that beyond just clearing arrears, the government is placing special emphasis on renewable energy sectors such as solar power, wind power, waste-to-energy production, and hydropower to ensure future energy security.

As part of expanding renewable energy, a master plan has been undertaken to implement solar power usage in all institutions under the Local Government Division. State Minister Mir Shah-e-Alam informed that the implementation of this plan has already begun. Under this initiative, solar panels will be installed on the rooftops of Union Parishad buildings, Upazila Parishads, municipalities, Zila Parishads, dak-bungalows, auditoriums, and city corporation buildings. The electricity generated will be connected to the national grid through a 'net metering' system and integrated, which will add a new dimension to power management.

According to ministry estimates, if solar power systems are implemented on the rooftops of these local government institutions nationwide, the government could save approximately 200 to 250 megawatts of electricity. This will not only reduce pressure on the power sector but also help decrease carbon emissions by increasing the use of environmentally friendly energy. The State Minister added that this renewable energy initiative will make the country's overall power system more sustainable and eco-friendly, and help build a secure energy system for future generations.

On the same day, State Minister Mir Shah-e-Alam attended a reception ceremony for meritorious students in Shibganj as the chief guest. In his speech, he praised the students' talents and wished them a bright future. He commented that such events encourage students and inspire them to be more focused on their studies. The main objective of the event was to recognize meritorious students for their academic achievements.

During the event, the State Minister also announced a humanitarian initiative. He pledged to support Mahfuz, a student who achieved a GPA-5 in the SSC examination despite physical challenges. On behalf of the State Minister, it was announced that Mahfuz's entire higher education expenses would be covered, and he would be provided with a prosthetic leg. This humanitarian assistance will bring new hope into the lives of students like Mahfuz and help them move forward in fulfilling their dreams.

A total of 233 GPA-5 achieving students were honored at this reception ceremony, presided over by Shibganj Upazila Nirbahi Officer (UNO) Ziaur Rahman. This event not only recognized the students' success but also served as an inspiration for them to excel further in their future academic lives. The presence of a high-ranking government official further enhanced the importance of the event and conveyed a positive message among local students.

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