Prime Minister Sheikh Hasina on Wednesday told the Parliament that the loan Bangladesh is taking from the International Monetary Fund (IMF), has no significant conditions attached with it.
“IMF provides loans to a country only when it has the capacity to repay the loan. We’re not taking loan (from IMF) with any conditions,” she said replying to an opposition lawmaker in the House.
Taking the floor on a point of order, Jatiya Party lawmaker Mujibul Haque Chunnu said Bangladesh is now meeting conditions to get the IMF loan, and already raised the electricity tariff and will hike gas price, and this will lead to soaring commodity prices and inflation.
The prime minister said the government is providing subsidies to power and gas.
“My question is, which other country in the world provides subsidies to electricity and gas? We’ve increased the electricity generation and ensured electricity supply. But all will have to exercise austerity in using electricity,” she said.
She said the price of electricity was raised by 150 per cent in England following the Ukraine-Russia war. “We’ve just enhanced the price of electricity by 5 per cent, and also raised the price of bulk gas to some extent now,” she added.
The PM said the spot price of LNG, which was only US$6, is now US$68 in the international market. “If so, how much subsidies will the government provide? The government provides the subsidies from the public money,” she said.
She said commodity prices have soared throughout the world.
In Bangladesh, the government provided fair price cards and Trading Corporation of Bangladesh (TCB) cards for the lower and middle-income people, so that they can purchase some essential commodities – including rice at subsidised rates – she added.
Sheikh Hasina said, “We’re providing huge subsidies to agriculture. Now if we need to provide Tk 40,000-60,000 crore to electricity-gas generation and supply, then how will we provide this?”
She said the inflation came down slightly in December and January last year in the country. The food inflation is 13.3 per cent in a country like England. The same situation prevails in all other countries of the world. But Bangladesh has not fallen into such a situation yet, she added.
The PM put emphasis on austerity in usage of electricity and gas. The use of electricity was reduced by 50 per cent in the Prime Minister’s Office and Ganabhaban. If all take such measures, they can practice austerity in the use of electricity, she said.
Sheikh Hasina said she clearly told the businesspeople that the government can provide uninterrupted gas supply to them, if they agree to pay the same rate that the government spends to procure gas from the international market.
“If they want uninterrupted gas supply, they would have to pay the same price that the government needs to procure gas. There is no reason to provide subsidies here,” she said.
