The interim government will not increase power tariffs despite a recommendation from the International Monetary Fund (IMF), said Power and Energy Adviser Dr. Fouzul Kabir Khan on Thursday.
"We will not raise power tariff despite IMF’s suggestion," Dr. Fouzul told reporters after a meeting with an IMF delegation at the Finance Ministry.
The delegation, led by IMF Mission Chief to Bangladesh Chris Papageorgiou, held a meeting as part of the IMF’s third review under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF). Finance Adviser Dr. Salehuddin Ahmed and Dr. Fouzul were present during the discussions.
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The energy adviser explained that while the IMF recommended a tariff hike to ease the subsidy burden in the power sector, the government emphasized the adverse effects such a move would have on citizens already grappling with high inflation.
The government is focusing on reducing subsidies by cutting production costs in the energy sector, the adviser said.
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He also highlighted several reforms aimed at improving efficiency and transparency in the power sector.
The government has repealed the Speedy Increase of Power and Energy Supply (Special Provision) Act, 2010, and removed bureaucrats from the boards of directors in various power companies, he noted.