Govt rejects IMF’s call for electricity price hike

Staff Reporter :

The government has decided against raising electricity prices, despite recommendations from the International Monetary Fund (IMF) to do so, according to Power, Energy, and Mineral Resources Adviser Fauzul Kabir Khan on Thursday.

Speaking to journalists at the office of Finance Adviser Dr. Salehuddin Ahmed at the Secretariat, the Energy Adviser explained the government’s position.

He said, “The IMF suggested increasing electricity prices as a way to alleviate subsidy pressure. However, we conveyed that the common people are already burdened by high inflation.

A price hike at this time would only worsen their suffering. The IMF acknowledged our concerns and accepted our stance.”

Fauzul Kabir Khan emphasised that instead of raising tariffs, the government is focused on reducing the subsidy requirements by lowering electricity generation costs.

“We have abolished the special provisions introduced for the power sector in 2010. Previously, government secretaries sat on the boards of various power companies, which often led to inefficiencies and corruption.

Those secretaries have now been removed, and we are actively addressing the corruption that occurred within the sector,” he stated.
This decision comes after several previous electricity price

increases, justified by rising production costs and the need to reduce the subsidy burden.

These hikes had already strained household budgets, particularly during times of economic instability. By resisting further increases, the government aims to provide some relief to citizens facing inflationary pressures.