PM calls for strategy to reduce subsidies

Prime Minister Sheikh Hasina has called for formulating a strategy to reduce subsidies on different sectors, especially gas and electricity sectors.

“She instructed to reduce gas and electricity subsidies gradually for the commercial sector,” Planning Minister MA Mannan told the media after the meeting of the Executive Committee of the National Economic Council (ECNEC) on Tuesday.

The prime minister joined the meeting through videoconferencing from her official residence Ganabhaban in Dhaka.

Sheikh Hasina talked about the subsidy during the discussion on an electricity project, said the planning minister while briefing the reporters after the meeting, according to UNB.

She said a huge subsidy is provided now. “We’ll have to come out of the subsidy. The subsidy is not a just thing…. Some people are getting it (subsidy) and some others are paying for it,” she was quoted as telling the meeting.

The PM asked the authorities concerned to work out a strategy to come out of the subsidy system gradually.

Replying to a question, State Minister for Planning Dr Shamsul Alam said no discussion was held over agricultural subsidy in the meeting. “The agricultural subsidy will continue as it will help increase production,” he said.

“The prime minister talked about electricity and gas subsidies as these are used not only by the poor but also by industries,” he said.

Sheikh Hasina said many people run air conditioners using electricity, which is expensive. Electricity is wasted due to lack of sincerity, she said.

She asked to reduce the subsidy gradually in case of luxurious use of electricity. “The subsidy should be given to the right places like slum communities, farmers and poor,” the PM was quoted as saying.

“Subsidy is not the solution for any civilised country. We have to gradually move away from gas and electricity subsidies,” the minister added.

However, State Minister for Planning Prof Shamsul Alam said the prime minister did not give any instruction to stop providing subsidies in the agriculture sector.

“Providing subsidies in the sector will continue. Besides, the government will continue to provide subsidies for underprivileged and poor people across the country.”