Plan taken to reduce overall cost of power generation by Tk11,000 crore: Finance adviser
"The amount of subsidies given in the power sector is currently around 1% of GDP, which is very high," says Salehuddin Ahmed
The finance adviser today (2 June) said a plan has been taken to reduce the overall cost of power generation by 10%.
"If this plan can be implemented, it is estimated that the cost of electricity subsidy of more than Tk 11,000 crore will be saved," he said in a pre-recorded speech telecast today while unveiling the national budget of Tk7,89,999 for FY26.
The finance adviser said, "The amount of subsidies given in the power sector is currently around 1% of GDP, which is very high."
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"We are reviewing the power purchase agreements and have taken the initiative to conduct energy audits to reduce the cost of power generation," he added.
The finance adviser said, "It is very important to ensure adequate supply of energy and at the same time keep it as affordable as possible to improve the quality of life of citizens and keep the economy running. We are reviewing the power purchase agreements and have taken the initiative to conduct energy audits to reduce the cost of power generation."
In the pre-recorded budget speech, Salehuddin Ahmed also outlined the government's plan to increase gas supply from local sources, saying that a plan has been made to supply 648 million cubic feet of gas from domestic sources within this year.
"Keeping these targets in mind, emphasis has been laid on increasing the capacity of the local gas exploration company BAPEX, and necessary funds have been allocated for this. We also plan to extract an additional 1500 million cubic feet of gas from local wells by 2028," he said.
