Finance Minister M Saifur Rahman at a high level meeting yesterday at his ministry hinted at these probable decisions, saying Bangladesh Petroleum Corporation (BPC) had to borrow Tk 5,000 crore from the Nationalised Commercial Banks (NCBs) as local petroleum price has not been adjusted with the global price.

Asked if the government is going to increase petroleum price, Saifur referred to the present oil price of $ 68 per barrel in the world market and said the government will have to spend $2 billion to import oil in the current fiscal year.

On whether the government will then raise the fuel price, the finance minister said, "We have to review very soon."

Pointing at the ever rising imports, Saifur said demand for foreign exchange for imports is going up as prices of various items, particularly of petroleum, increased in the global market, creating extra burden on the national economy. " New challenges are emerging every day and for that we have to change and re-change the rules to cope with the new situation," he told the meeting attended by high officials of the finance ministry, energy ministry, Bangladesh Bank (BB) and nationalised commercial banks (NCBs).

On reduction of non-development expenditure, the minister said he had already discussed this with the finance secretary and he will soon start working on how to do this.

Regarding two-day weekly holiday, the minister underscored austerity in economic activities to face the on-going economic crisis. He had also informally discussed this with the prime minister but it is the cabinet which will take the final decision, Saifur told the journalists.

The price hike of petroleum in the global market, shrinking foreign exchange reserve, depreciation of taka and sharp rise in import were among the issues that featured at yesterday's meeting.

The energy secretary informed the meeting the BPC had to borrow Tk 7,000 crore -- Tk 5,000 crore from local banks and Tk 2,000 crore from Islamic Development Bank-- a meeting source said.

A committee headed by Mohammad A (Rumi) Ali, deputy governor of the BB, was formed at the meeting to look into if money is being smuggled out of the country through fake LCs. The National Board of Revenue (NBR) and NCB will have their representatives on the committee.

Saifur said the committee will scrutinise LC documents to see if there have been any manipulations in invoicing and if the item for which a particular LC was opened was really brought. "They (committee) will examine if foreign currencies are being smuggled out of the country."

The BB governor, finance secretary, NBR chairman and planning secretary were among those present at the meeting.