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IMF To Relieve Govn’t From Energy Subsidies Burden

International Monetary Fund's adviser for Asia and Pacific, Thomas Rumbaugh, recommended yesterday that Bangladesh raises fuel prices to relieve government from energy subsidies burden

International Monetary Fund's adviser for Asia and Pacific, Thomas Rumbaugh, recommended yesterday that Bangladesh raises fuel prices to relieve government from energy subsidies burden.

The advice came at a press conference at Bangladesh Bank Bhaban three days after the government doubled the price of compressed natural gas.

However, Rumbaugh suggested, Bangladesh should at the same time help keep prices of commodities within people's reach.

Asked if the CNG price hike would likely raise inflation further, the IMF adviser said the organisation advised the government to adjust fuel prices in line with the global market.
The IMF adviser asked authorities to remain vigilant in monitoring inflation. "If economic activity and credit demand pick up, a monetary policy response may be required to keep inflationary pressure in check," he said.

Rumbaugh was optimistic that Bangladesh would have a better than expected GDP growth this year.

The IMF adviser said the Saudi prince's refusal to buy state-owned Rupali Bank was unfortunate. He asked the government to take steps to reactivate the bank saying the IMF had some suggestions on the matter.

The press conference followed a meeting between Rumbaugh and Bangladesh Bank governor Salehuddin Ahmed.