Bangladesh Struggling To Muster Dollars To Pay Indian Power Debts Sources Say

Bangladesh struggles to find dollars to repay Indian power debts

Dhaka seeks 25% cut in contracted power supplies due to high energy costs

The energy-hungry country owes India more than $1 billion for power purchases

Bangladesh is struggling to secure enough dollars to pay for power imports from India, according to sources familiar with the matter, as the energy-hungry country grapples with a severe shortage of foreign exchange reserves.

Dhaka has requested a 25% reduction in its contracted power imports from India, citing high energy costs and a need to conserve foreign exchange, the sources said.

Bangladesh owes India more than $1 billion for power purchases, and the outstanding amount has been growing as the country's foreign exchange reserves have dwindled.

The foreign exchange reserves of Bangladesh have fallen by more than $10 billion since the beginning of the year, and now stand at around $30 billion, the lowest level in nearly four years.

The decline in foreign exchange reserves has been driven by a combination of factors, including the rising cost of imported energy, a slowdown in exports, and a decrease in remittances from Bangladeshi workers abroad.

Bangladesh is heavily dependent on imports of energy, and the rising cost of oil and gas has put a significant strain on the country's economy.

The government has taken a number of steps to reduce its reliance on imported energy, including increasing domestic production of gas and coal, and promoting renewable energy sources.

However, these measures are unlikely to have a significant impact on the country's energy import needs in the short term.

The government is also considering seeking financial assistance from the International Monetary Fund (IMF) to help it meet its foreign exchange obligations.

An IMF bailout would come with conditions, such as fiscal discipline and structural reforms, which could help to improve the country's economic outlook in the long term.

However, the government is reluctant to seek an IMF bailout, as it could lead to a loss of sovereignty and political unpopularity.