The New Nation - Internet Edition

UNB, Dhaka

Finance Adviser Dr Mirza Azizul Islam yesterday said subsidies on gas, fuel and fertilizer at the present rate should not continue further as such incentives have long-term adverse effects on economy.

He admitted that there would be some sufferings from the latest hike of Compressed Natural Gas (CNG) price.

"Indeed, there will be some sufferings from CNG price-hike. But how long will you continue to give subsidies on some materials like gas, fuel and fertilizer? Subsidies at the present rate cannot go on further. Such practices have long- term adverse impact on economy," the Finance Adviser said.

He was talking to journalists on the sidelines of a seminar 'Official Statistics: Collection and Dissemination' arranged by Bangladesh Statistical Association at the National Economic Council (NEC) auditorium in the morning.

Presided over by Statistical Association president Prof. Quazi Mafizur Rahman, the seminar was also addressed, among others, by association vice-president Prof. Samad Abedin and secretary general Abdur Rashid Sikder.

The finance adviser said that at the beginning of this fiscal year, some Tk 6,000 crore had been allocated as subsidy. But later, the government had to increase the amount of subsidy to Tk 15,000 crore.

Asked whether the price-hike of CNG is timely, he said: "No time is good enough.

If the price of CNG was not increased, then the government would have been forced to realize the extra expenses (of subsidy) through increasing tax or through deficit budget."

Dr Aziz said price of many things like gas or other fuels are many times lower in Bangladesh than the neighboring countries.

Addressing the seminar as chief guest, the finance adviser urged the Bangladesh Statistical Association to come up with "timely, reliable and objective statistics without being politically influenced."

Without authentic data, no development project can be implemented successfully, he said.