IAB opposes power, energy privatisation without reforms

Islami Andolan Bangladesh has warned against privatising the energy and power sectors without first establishing effective commercial governance, saying it could open new avenues for exploitation.

In a statement on today, the party’s Secretary General Maulana Gazi Ataur Rahman said major businesses in Bangladesh often lack transparency, accountability, fairness and respect for the rule of law. He warned that handing over fuel import, processing, distribution and marketing to private companies could lead to further corruption and profiteering. He said, the country was still paying the price for privatising power generation, particularly through the “capacity charge” system.

Rahman also opposed removing subsidies or privatising essential public services solely on the recommendations of the IMF and World Bank, arguing that governments worldwide subsidise sectors serving the public interest. He urged, the government not to rush into privatisation and to consider Bangladesh’s realities. Instead, he called for improving tax collection, simplifying tax laws and tackling corruption among revenue officials. He also urged the government to reduce system losses and increase state revenue rather than shifting the energy and power sectors to private operators.