The New Nation - Internet Edition

Staff Reporter

Finance Adviser AB Mirza Azizul Islam yesterday emphasised the need for massive privatisation of sate-owned entities and said industrial units cannot run effectively under government management.

"I don't believe that a government-run industry can work efficiently," he told a seminar titled 'Budget 2008-09 and Development of Northern Region' at CIRDAP auditorium.

The employees of government-run companies do not work properly, the adviser noted.

Aziz said government employees just wait for the salary at the end of the month despite the fact that government-owned industries are incurring huge losses year after year.

Citing the example of sugar industries, the Finance Adviser said mismanagement is the main problem of a government-run industry.

"If we want to save the sugar industry in the North there is no alternative but to privatising it," the Adviser said.

In the budget for the outgoing current year, import duty on raw and refined sugar had been fixed in a way that locally produced sugar enjoyed an advantage amounting to Tk 7 to Tk 8 per kg.

"Despite all, local sugar mills are failing to withstand in the competition," Aziz said.

The Finance Adviser said a budget cannot only look at the interest of businessmen and industrialists. "It has to consider the interest of all consumers as well."

If high duty is imposed on the import of sugar to protect the local sugar industry, sugar will sell at Tk 40 to Tk 50 a kg.

"That's why tolerable duty has been imposed on the import of sugar, considering the interest of consumers in the new budget," he said.

Aziz said, the present caretaker government has officially recognised regional inequality and formed a high-level committee to remove the disparity.

"The committee has already submitted its report, which will be published soon. Necessary steps will be taken to remove regional inequality," the adviser said.

He informed the seminar that another committee has been formed to remove the Monga in the northern region with Commerce Adviser Hossain Zillur Rahman at its head.

On price rise of essentials the Finance Adviser said the new budget proposed steps to bring down inflation to a tolerable level. "Not only Bangladesh, the whole world is experiencing high inflation. In India, inflation has reached 8.7 per cent, highest in seven years," said Mirza Aziz.

Chairman of the National Board of Revenue (NBR) Muhammad Abdul Mazid and former MP Golam Habib Dulal also spoke at the seminar. Chairman of North Bengal Development Council Dr M Azizur Rahman presided over the seminar.