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dollar shortage and slow payment of overdue bills by the government.

“Local banks are struggling to source US dollars to settle the limited fuel import letters of credit, foreign loan repayments, and spare parts procurement. The power sector requires support from the Bangladesh Bank to ensure uninterrupted power generation,” he said.

Apart from this, the government owes over Tk 25,000 crores to IPPs in monthly bills. Some plants have more than nine months of payment overdue, he said.

The BIPPA chief said the Bangladesh Power Development Board (PDB) makes partial payments each month from their revenue collection and support from the finance ministry.

The dues are building up because of non-release of funds allocated to the power sector during the national budget for the current fiscal year, according to Khan.

Consequently, he said, IPPs are suffering massively from forced loans and defaults on loans and other payments.

“IPPs are collapsing due to the huge receivables,” he said.

He said IPPs are prepared to support the nation to meet its electricity needs but they alone do not have the capacity to ensure uninterrupted electricity without the US dollar support from the Bangladesh Bank and resolution to the cashflow crisis due to extremely delayed bill payments.

Khan said high interest rate on loans, inflation and disparity in the foreign exchange rate are the key challenges for businesses and the economy.

“We need to overcome these challenges to attract more foreign direct investments and ensure survival of local industries.”