RE: Financial Express 25th December Stories25 Dec 2023 02:47
....continued
Subsidies ending up in wrong hands
Instead, what we have been witnessing is a mind-boggling shameful misappropriation of government funds, especially in the energy sector. A large portion of the subsidy in the power sector is spent on paying capacity charges to around 100 private power plants, which amounted to more than Tk 1.0 trillion during the present government's three terms in power.
'Surprisingly, these power plants are given the capacity charge even when they produce no electricity. Such brazen misuse of taxpayers' money is undesirable, unfair and a grave injustice to the nation. The government must get out of the dubious agreements with the private power plants and adopt a policy of no-electricity, no-pay. Rationalisation of subsidies in the power and energy sector is one of the main conditions of the IMF's $4.7 billion dollar loan package to Bangladesh. To the dismay of the people, the government has already increased tariffs of power, gas, and fuel several times to reduce the burden of subsidy in this sector, and it is widely believed the tariffs will be hiked once again after the election'
Centre for Policy Dialogue report:
The minister said the CPD claimed that about Tk 920 billion including the loans taken by different big groups has been looted.
https://thefinancialexpress.com.bd/national/cpd-press-conference-aimed-at-diverting-peoples-attention-before-polls-hasan
Bangladesh, China economic ties poised for new era after elections: Chinese envoy
Bangladesh and China will witness a new era of development in economic relations after the general elections, Chinese envoy in Dhaka Yao Wen has said.
https://thefinancialexpress.com.bd/national/bangladesh-china-economic-ties-poised-for-new-era-after-elections-chinese-envoy
Injection of $1.31b funds is stopgap relief for falling forex reserves, economists say
'In their critical appreciation the economists alert the third tranche of the IMF loan is bound by 'hard terms'.
Terming the second tranche a 'stopping gap' for the depleting reserves, they say this is just a short-term remedy--there is no long-term solution yet.
They look on to the next IMF mission expected to visit end of March next for assessing Bangladesh's economy before recommending release of the third tranche of the total $4.7 billion worth of loan. This will require Bangladesh to conduct several tough economic reforms, including market-based exchange rate.
"I think this is a very short-term implication for the economy," says Dr Ahsan H. Mansur, executive director of the Policy Research Institute of Bangladesh (PRI).
"Such financial support will last until the post-national election and then the reserves will start depleting," notes Dr Mansur, who had once served the IMF.
Dr Zahid Hussain, an independent economist, who had served the World Bank, told the FE that the $1.3 billion would last at best six weeks.
Think we all know big changes are coming
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