Budget FY26: A Missed Opportunity To Resolve Bangladesh's Energy Crisis

The national budget of Bangladesh for the fiscal year 2025-26, proposed at Tk 7.

- Dr. AKM Asaduzzaman Patwary

9 trillion, reflects a complex interplay of economic priorities and mounting challenges. It arrives at a time when demands from various sectors far outstrip the availability of resources. Energy remains a critical input for most industrial and economic activities. A stable and uninterrupted energy supply is intrinsically tied to productivity, industrial growth, and overall economic resilience. Yet, a closer look at the energy and power sector allocations reveals a worrying disconnect between fiscal priorities and the severity of the ongoing energy crisis.

In recent times, energy security has become a pressing concern, driven by supply constraints and steep tariff hikes. Against this backdrop, the allocation of only Tk 225.2 billion to the Power and Energy sector-down 0.8 percent from the previous year- underscores a stark mismatch between fiscal planning and pressing on-ground realities. Rather than tackling the deepening energy crisis that continues to cripple industrial output-especially in key export-oriented sectors-the budget appears conservative, reactive, and lacking in strategic depth. This cautious approach overlooks the urgent need to ensure a reliable and predictable energy supply for the private sector, which is vital for sustaining industrial productivity and broader economic stability.