Rescinding power subsidy and upward tariff adjustment are twin strings among other dos binding release of the next tranches of the International Monetary Fund (IMF) loan release, officials say regarding the latest developments.
They said Tuesday the IMF recommended bundling out entire subsidy on power within next fiscal year (FY) 2025-26 for getting next installments of the assured US$4.7 billion worth of loan.
The latest IMF review mission that concluded Bangladesh visit on an extensive reappraisal of the country’s economic fundamentals also suggested that the government readjust the electricity price in order to cut the fiscal burden, they added.
Meanwhile, Bangladesh has requested the Washington-based lender to simplify their conditions so that government plan and action on subsidy cuts could work.
“If the government fails to trim the massive electricity subsidy down to zero, the expected 4th and 5th tranches of the IMF loans can be uncertain,” said a couple of officials who negotiated with the IMF review team.বিস্তারিত