Fuel price hike not linked to IMF conditions: Finance Minister

Finance Minister Amir Khasru Mahmud Chowdhury has stated that the recent increase in fuel prices bears no connection to any condition set by the International Monetary Fund (IMF).

The decision was taken independently in response to global market conditions and the need to safeguard public finances, he asserted.

Speaking to journalists at his office in the Ministry of Finance at the Secretariat on Sunday, following his return from the Spring Meetings of the World Bank and the IMF in Washington, the minister emphasised that no condition contrary to public interest would be accepted by an elected government.

“The increase in fuel prices was not driven by IMF pressure,” he said. “It was necessitated by the global context and the imperative to protect the government funds.”

The Spring Meetings, held from 13 to 18 April in Washington, brought together global financial leaders to discuss economic challenges and cooperation.

Responding to questions about whether the price hike was part of IMF loan conditions, the minister noted that fuel prices have risen worldwide.

Citing Sri Lanka as an example, where prices have increased by up to 25 per cent, he added that Bangladesh had refrained from raising prices for an extended period to protect consumers, but a limited adjustment had become unavoidable.

“Many have been asking why we were not increasing fuel prices despite mounting pressure on public funds,” he said. “Without adjustment, how could the country be run? Therefore, we have increased prices only to the extent necessary.”

Speaking on concerns that higher fuel prices might exacerbate inflation, the minister offered a measured response. “Inflation may or may not spike,” he said, arguing that the share of fuel in the overall inflation basket is relatively small and that the increase itself was modest.

Addressing broader negotiations with development partners, he said discussions with institutions such as the IMF, World Bank, Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB) are part of an ongoing process.

“There are expectations on both sides. We cannot simply act according to their wishes, as we are a democratically elected government,” he added.

He reaffirmed that the government remains committed to protecting public interest and would not accept any condition that undermines national priorities. “This is a matter of mutual understanding,” he said.

The minister indicated that talks with the IMF are expected to continue for another 15 to 20 days, while discussions with the World Bank are nearing completion. Negotiations with the ADB and AIIB have already concluded.

Referring to the existing IMF loan programme initiated under the previous government of the Bangladesh Awami League, he noted that certain conditions set at that time may not be acceptable to the current government.

“The Awami League government was unelected and the incumbent BNP government is an elected one. If any IMF condition conflicts with the interests of the people, an elected government will not accept it,” he said.

He further observed that the current IMF programme is set to conclude within six to seven months, after which the government will decide whether to enter into a new programme.

Responding to speculation that the introduction of the “family card” initiative might affect IMF disbursements or lead to new conditions, the minister dismissed the claims.

“There is no connection between the family card and IMF loans,” he said, adding that the initiative has been positively received by development partners as a mechanism to ensure that the benefits of economic growth reach lower-income groups.

Reiterating his position, the finance minister concluded that no donor agency’s conditions would be accepted at the expense of public welfare, underscoring the government’s commitment to balancing economic management with social responsibility.