There is no International Monetary Fund (IMF) condition behind the rise in fuel oil prices, the prime minister’s adviser on information and broadcasting, Dr Zahed Ur Rahman, has said.
He said so in reply to a question from journalists at a press briefing at the Secretariat on Tuesday afternoon, on the progress of work in various government ministries and on current matters.
Asked whether there was any IMF condition attached to raising fuel oil prices, the prime minister’s information adviser said there was no such condition. The IMF’s basic rule, he said, is that it does not want a government to give very large subsidies. That is their general rule.
He said: “If you look closely, you will see that we always go along with everything — not necessarily.”
Even on the projects we have, he said, they are not in fact very comfortable. “But we are doing this for the welfare of our people. This has no connection with that,” he said.
Dr Zahed said: “Look at the amount of subsidy we are giving on fuel; if you add gas and electricity to this liquid fuel, see how large the subsidy is. This subsidy has to be reduced. We can understand that with very basic economic knowledge.”
He said: “Now, how much we will reduce it, and how much can be reduced on which item — perhaps we are taking that decision.”
Zahed Ur Rahman said there was no scope for seeing the decision to raise fuel oil prices as directly linked to any IMF condition. The government’s main consideration, he said, is reducing the amount of subsidy given on fuel, gas and electricity, and determining how much adjustment will be made in doing so.