No IMF condition on fuel price hike: Zahed

Prime Minister’s Information Adviser Dr Zahed Ur Rahman on Tuesday said the recent fuel price hike was not imposed as a condition by the International Monetary Fund (IMF).
He made the remarks while responding to journalists’ questions at a press briefing on the progress of various ministries and contemporary issues at the Press Information Department (PID) conference room at the secretariat.
Zahed said the government was aware that the fuel price hike would add to people’s hardship but had no better alternative amid subsidy pressure and turmoil in the international oil market.
He said the government would not deliberately take such an unpopular decision at a time when local government elections are approaching.
“We hope that the people will realise why their elected government took this decision at this moment,” he said.
Rejecting suggestions that the decision was linked to an IMF condition, Zahed said the global lender’s general policy was against excessive government subsidies, but the government’s move to reduce subsidies on fuel, gas and electricity was based on the country’s own economic realities.

Referring to recent movements in global oil prices, he said crude oil prices had declined slightly, by around 2–3% over the past few days, but remained above $100 per barrel.
According to Zahed, around Tk48,000 crore has been allocated for subsidies in the sector in the current fiscal year, nearly half of which has already been disbursed within the first two and a half months.
He warned that if subsidies for gas and electricity continued at the current rate, the amount could reach Tk1.25 lakh crore to Tk1.5 lakh crore by the end of the fiscal year.
Responding to a question about the government’s decision to increase public servants’ salaries amid mounting pressure from energy subsidies, Zahed said the last pay scale was implemented in 2015 and had not been revised for a long time.
Turning to the political situation, the information adviser said the government saw no political crisis.
“A few cocktails have exploded in some places in Dhaka and buses have been set on fire. I do not think these incidents can create a crisis within the government,” he said.
On the role of the police, Zahed said the force needed to move away from what he described as the policing culture of the Sheikh Hasina era.

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