Aziz for hike in gas, power and fuel oil prices, but not now
Thursday, 11 October 2007
FE Report
Finance and Planning Adviser AB Mirza Md Azizul Islam Wednesday stressed the need for increasing the prices of gas, power and fuel oil to bring discipline to the national budget and help in reducing its deficit.
"The subsidy-based financing of utility services cannot continue for long," he told the newsmen justifying the hike following a meeting with the visiting Asian Development Bank (ADB) vice president Liqun Jin at his office in the planning ministry.
He, however, told the newsmen that the government is not mulling plans to enhance these prices right now.
The ADB vice president arrived in the capital Wednesday on a three-day visit to review the projects in Bangladesh and extend further cooperation for development of the country.
Talking further on the price hike of utility services the finance adviser said the continued government subsidy in their prices are hampering discipline in the national budget widening the amount of deficit.
"So the government will have to think about it seriously not only to reduce subsidy but also to strengthen the financial capacity of the sectors concerned," Islam said.
Currently, the government is paying subsidies amounting to several thousand billions to the utility services especially gas, power and petroleum for the local consumers.
During the meeting, the ADB vice president also discussed on various issues including the agency's support for development of the energy and power sector, infrastructure development and proposed support to recover from the country's recent flood related damages.
To develop the country's power sector the Manila-based lending agency has already approved US$ 465 million support.
The ADB is also keen to extend support for development of the country's infrastructure especially the highway bridge, railways and urban transport system.
It has also agreed in principle to provide funding for construction of Padma Bridge.
The ADB is also set to provide funding worth $ 130 million along with the other development partners to help the government recover the losses of the recent two consecutive flooding.
During the meeting the ADB vice president praised the government on the performance of various ongoing reform programmes including the anti-graft drives to ensure good governance.
Liqun Jin, however, cautioned the government to remain alert from any sort of economic setback out of the government drives.
He also underscored the necessity for a sustainable development in the country's energy sector to ensure the country's energy security in the coming years.
During the discussion the visiting ADB's top official also endorsed a World Bank proposal for formation of a special fund to face any disaster after proper scrutiny.
Economic Relations Division (ERD) secretary Aminul Islam Bhuiyan and ADB country director in Bangladesh Hua Du were also present during the meeting.
Finance and Planning Adviser AB Mirza Md Azizul Islam Wednesday stressed the need for increasing the prices of gas, power and fuel oil to bring discipline to the national budget and help in reducing its deficit.
"The subsidy-based financing of utility services cannot continue for long," he told the newsmen justifying the hike following a meeting with the visiting Asian Development Bank (ADB) vice president Liqun Jin at his office in the planning ministry.
He, however, told the newsmen that the government is not mulling plans to enhance these prices right now.
The ADB vice president arrived in the capital Wednesday on a three-day visit to review the projects in Bangladesh and extend further cooperation for development of the country.
Talking further on the price hike of utility services the finance adviser said the continued government subsidy in their prices are hampering discipline in the national budget widening the amount of deficit.
"So the government will have to think about it seriously not only to reduce subsidy but also to strengthen the financial capacity of the sectors concerned," Islam said.
Currently, the government is paying subsidies amounting to several thousand billions to the utility services especially gas, power and petroleum for the local consumers.
During the meeting, the ADB vice president also discussed on various issues including the agency's support for development of the energy and power sector, infrastructure development and proposed support to recover from the country's recent flood related damages.
To develop the country's power sector the Manila-based lending agency has already approved US$ 465 million support.
The ADB is also keen to extend support for development of the country's infrastructure especially the highway bridge, railways and urban transport system.
It has also agreed in principle to provide funding for construction of Padma Bridge.
The ADB is also set to provide funding worth $ 130 million along with the other development partners to help the government recover the losses of the recent two consecutive flooding.
During the meeting the ADB vice president praised the government on the performance of various ongoing reform programmes including the anti-graft drives to ensure good governance.
Liqun Jin, however, cautioned the government to remain alert from any sort of economic setback out of the government drives.
He also underscored the necessity for a sustainable development in the country's energy sector to ensure the country's energy security in the coming years.
During the discussion the visiting ADB's top official also endorsed a World Bank proposal for formation of a special fund to face any disaster after proper scrutiny.
Economic Relations Division (ERD) secretary Aminul Islam Bhuiyan and ADB country director in Bangladesh Hua Du were also present during the meeting.