Oil price cut to come after PM gives approval: AMA Muhith
Abdur Rahim Harmachi, from Washington, DC, bdnews24.com
Published: 2017-04-21 11:42:17.0 BdST Updated: 2017-04-21 12:03:22.0 BdST
The government's plan to cut oil prices in Bangladesh to boost economic growth is awaiting final approval from Prime Minister Sheikh Hasina, Finance Minister AMA Muhith has said.
“The prime minister’s response is expected shortly."
Muhith is currently in Washington to attend the spring meetings of the International Monetary Fund and the World Bank. His comments came during a media briefing following his meeting with IMF Deputy Managing Director Mitsuhiro Furusawa at the organisation’s headquarters on Thursday.
The low prices of oil on the world market had previously prompted the finance minister to promise cuts in domestic prices, but they did not come to pass.
“I have told IMF officials that we wish to continue our subsidies on electricity and fuel,” said Muhith.
“At the moment we wish to decrease the cost of oil a bit. We have informed the prime minister of our proposal. The price will be decreased once we have her approval.”
Muhith said he also discussed Bangladesh’s upcoming VAT plans with the IMF.
“The IMF officials wished to know how we planned to implement the new VAT. We told them it would come into effect in July and be set at 15 percent for the first two years. Changes to the plan will be considered after that.”
Some concessions may be made after taking the demands of businesses into consideration, but the VAT will be set at 15 percent, Muhith said.
The IMF is quite pleased with Bangladesh’s economic situation, said the finance minister.
“Aside from remittances, our economic indicators are positive.”
Asked whether Bangladesh would be taking out further loans from the IMF after the end of its Extended Credit Facility period, Muthith said, “We have over $32 billion in reserves and our reserve position is good. At the moment we do not need any IMF loans. We will borrow more when our Balance of Payments is poorer.”
Bangladesh Bank Governor Fazle Kabir, Finance Division’s Senior Secretary Hedayetullah Al Mamoon, Economic Relations Division’s Acting Secretary Kazi Shofiqul Azam and Bangladesh’s Alternate Executive Director to World Bank Muhammad Musharraf Hossain Bhuiyan accompanied the finance minister as part of Bangladesh’s delegation to the IMF-World Bank meeting.
Any unauthorised use or reproduction of bdnews24.com content for commercial purposes is strictly prohibited and constitutes copyright infringement liable to legal action.
- Flash floods will not drive up rice prices, says food minister
- Banks asked not to take loan instalments from farmers in Haor areas
- IFC eager to invest in agriculture
- World Bank Group, China-led AIIB agree to deepen cooperation
- Akbar Ali Khan sees no sign of good governance in near future
- India 'relaxes' loan conditions for Bangladesh, Finance Minister Muhith says
- Muhith expects 7.5 percent growth in 2016-17 fiscal
- Bangladesh relies on BIMSTEC as SAARC fails: Gowher Rizvi
- Remittances to developing countries decline for second straight year: World Bank report
- Oil price cut to come after PM gives approval: AMA Muhith
- Bangladesh directors to boycott actor Shakib Khan
- RAB arrests BUET student, suspected JMB ‘bomb expert’
- SSC results date announced
- Emma Watson remembers Rana Plaza in tweet
- India-owned BHEL gets $1.5 billion order to build Rampal Power Plant
- China to invest $2 billion in Bangladesh construction materials sector
- 12,000 illegal Bangladeshi immigrants ready to leave Saudi Arabia
- Law Minister Anisul Huq asks chief justice not to complain publicly
- Device found in Sylhet school not a bomb, says RAB
- Five-year-old Sumaiya missing for 23 days now