"A total of 500 new taxicabs will hit the streets of Dhaka and Chittagong before the (Bangla) New Year," he told reporters on Sunday while seeing the traffic situation in Dhaka's Shantinagar.
The Army Welfare Trust will operate 250 of the new taxicabs while the rest will be run by a private organization Tama Group.
The number of taxicabs has now come down to 3,000 in Dhaka from about 12,000 in 2007, according to Bangladesh Road Transport Authority. Road permits of those still plying will expire in 2013.
The reduced number of taxicabs is a problem for commuters who often have to pay exorbitant charges for those few available.
The government had authorised the Army Welfare Trust and Tama Group in July last year to operate taxicab services in Dhaka and Chittagong.