External debts going to devastate economy this year
06 January 2023
Economic mismanagement coupled with corruption during the period of this authoritarian government has been monumental. Bangladesh's economy has come to this present hopeless state due to the government's unabashed misuse of public funds in the name of mega projects that the government has always brought before the public as examples of 'development'. But these mega projects which were gold mines for corrupt people have made the economy inwardly hollow. As a result, more poor people are being created in the country at a faster rate than ever.
Take, for example, the power sector where squandering of money for more than a decade has created a huge burden on the taxpayers in the name of lightening the whole country by initiating use of rental and quick rental power plants. According to a report of a national daily, power sector mega projects are producing a hefty debt bill of $2 billion annually for the country, including interest which is worsening the ongoing dollar crisis.
Quoting sources of the Power Development Board (PDB) officials, the report mentions that, of the $2 billion debt, $1.5 billion is due in principle and interest in the public sector, while the remainder is in the private sector. The report reveals that the PDB and its subsidiaries owe roughly $9 billion to overseas lenders, who invested in the power sector with a sovereign guarantee, implying that the government guaranteed the security of their investment. The private power companies have an outstanding loan of $4.4 billion. The power sector's liabilities are set to increase over the next few years due to the introduction of mega power generation projects, often based on liquefied natural gas.
How would the government repay the mounting loan when it has no clear control on the falling reserves? As the government is not elected by the people so it does not matter that the people have no money to afford soaring prices of everyday necessities. Life is easy for the corrupt ones who are still making money under the watch of the government.
