75% of GDP eaten up by BPC

BANGLADESH – The International Monetary Fund (IMF) continues to press Bangladesh to readjust fuel price and has set it as one of the preconditions for the fifth Poverty Reduction and Growth Facility (PRGF) review that will pave the way for another US$70.43 million loan, sources said.

The losses from fuel prices is undermining the financial and capital positions of BPC, Petrobangla and state-owned banks, adversely affecting both the money and foreign exchange markets, promoting smuggling and encouraging inefficient consumption by delaying the inevitable adjustment to international prices, it added.

It also said,