The Government of Bangladesh has announced its plan to clear all external arrears in the power and energy sectors by December 2025, targeting the payment of over US$829 million in outstanding foreign debts, a top policymaker said.
The Ministry of Power, Energy and Mineral Resources has moved proactively to clear the dues, aiming to enhance the country’s reputation in the international financial system. Of the total arrears, the Power Division accounts for $529 million, while the remaining amount falls under the Energy and Mineral Resources Division (EMRD).
In early April, 2025, the International Monetary Fund (IMF) requested a detailed payment plan for foreign liabilities from the Power Division during a high-level meeting. “The Power Division will submit the full payment plan ahead of the next IMF team visit scheduled for June 11, 2025,” said Muhammad Fauzul Kabir Khan, Adviser on Power and Energy Affairs, in an interview with Just Energy News.
“When the interim government assumed office, the total foreign debt in the power and energy sector stood at $3.2 billion. We’ve now brought that down to $829 million,” the adviser added.
He also confirmed that Bangladesh currently has no outstanding late payment surcharges, as payments are being made on schedule. “This discipline has helped reduce the LNG import tariff from $16–$17 per MMBtu to $11,” he said, expressing satisfaction.
To further stabilize energy imports, the government plans to expand its government-to-government LNG procurement. A high-powered delegation led by Interim Government Chief Adviser Prof. Muhammad Yunus is scheduled to visit Qatar from April 22 to 24, during which plans to increase LNG imports from the Qatari government are expected to be finalized.
Currently, Bangladesh is purchasing imported gas at Tk 70 per cubic meter, which is blended with locally produced gas priced at Tk 27.82 per cubic meter. “This creates a price gap of Tk 5.05 per cubic meter,” said EMRD Secretary Mohammad Saiful Islam. He added that the government has allocated Tk 6,500 crore in energy subsidies. “A slight tariff adjustment for new gas supplies will allow us to import more LNG to meet growing domestic demand,” he noted.
For the fiscal year 2024–25, Bangladesh plans to import 96 LNG cargoes at an estimated cost of Tk 55,357 crore. This number is projected to rise to 115 cargoes in 2025–26, with an estimated total cost of Tk 67,607.35 crore, averaging around Tk 587 crore per shipment.
A senior official from the Power Division noted that the projection for external arrears assumes a 60-day payment cycle. He expressed confidence that the government will meet its target and fully settle all dues by December 2025.