Better to endure load shedding than take more loans: Power Minister

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku has said it is preferable for the country to tolerate some load shedding rather than take on additional debt to manage the current energy crisis.

He made the remarks while speaking at a ceremony at the secretariat on Thursday (February 26).

He made the remarks at the handover ceremony of the newly elected committee of the Forum for Energy Reporters of Bangladesh (FERB), an organization of energy journalists, at the Secretariat on Thursday (February 26).

Highlighting the challenges facing the power and energy sector, the minister said, "Several power plants remain non-operational due to mounting arrears and fuel shortages."

Drawing a comparison with the 2001–2006 BNP government, Tuku noted that while load shedding existed then, it did not place a heavy debt burden on the nation. “Although power supply is currently available, the country is trapped in debt. It is better to endure limited hardship than to shoulder additional loans,” he said.

On electricity pricing, the minister stated that despite high outstanding debt, the government does not intend to pass costs onto consumers immediately. He added that expenditures are being managed while renegotiating energy contracts and preparing for potential IMF-recommended price adjustments.

Tuku also stressed reducing system loss, noting it has risen from 6% during the 2001–2006 period to 10% today. Reducing it to 5% would eliminate the need for tariff hikes, with a long-term target of 3%.

Regarding the gas shortage, he attributed the crisis to past government inaction, citing insufficient well drilling and production increases. He added that increasing gas output will take time due to technical and operational constraints.