Recession to derail energy targets: Muhith

Citing the on-going economic recession, the finance minister, A M A Muhith, warned Monday that it was unlikely the government would be able to fulfill its polls pledges in the energy sector.

"The power and gas solutions that we had dreamt up before the elections would not be materialised in three years because of the great economic recession," the minister told reporters. "We'll need our full five years in power."

Muhith's comment came after a meeting with 20 secretaries of ministries under the Medium-Term Budget Framework (MTBF).

The Awami League manifesto had promised to prop up power production to 5,000 megawatts in just three years.

The minister described the gas crisis as very grave, and said: "There is no way of getting out this grave crisis. But after three years, we expect to produce 300 MMCF of gas every day."

He said he would increase spending on power and gas sectors.

The minister said his budget speech would also spell out the government's energy plans for the next five years. He said four new ministries—housing, Bridges Division, power and energy—had been brought under MTBF.

Under MTBF, the ministries had been asked to make a three-year budget projection.

"This will ensure accountability and ownership of the ministries with regard to the budget," the minister said.

The recession would also force the government to raise the level of subsidies, he said, and employment, training, agriculture, rural development would receive special attention.

Tue, Apr 7th, 2009 12:29 am
BdST