Government's commitment to redirecting subsidy scheme stressed

Manama, Dec. 28 (BNA): Information and Parliament Affairs Minister Isa Abdulrahman Al-Hammadi underscored the importance of partnership with the private sector in fast-tracking economic development. In his post-Cabinet press briefing today, he reiterated the government's keenness to promote cooperation with the private sector in developing and implementing projects, pointing out a number of ventures carried out through partnership between the public and private sectors which reflects commitment to achieving long-term and short-term development goals. Al-Hammadi stressed that the inauguration of the Dragon Mall in Diyar Al Muharraq with an estimated investments of $ 100 million is a positive index of cooperation between the public and private sectors to enhance the development and investment momentum in Bahrain. He added that the mall contains 700 commercial outlets which all require associated services and employees. Being a key job purveyor, he noted, the pioneering project will broaden the scope of competitiveness at the local market as it is expected to have a direct effect on invigorating the trade momentum in Bahrain and commercial exchange with China. The Information and Parliament Affairs Minister emphasised the government's commitment to redirecting subsidy for citizens as part of its work programme that was approved by the parliament. He said the government has already started implementing the scheme which requires initiatives to be translated into a reality to benefit citizens. He added that consultations between the executive and legislative branches are underway regarding many issues, pointing out a meeting between the specialised parliamentary committee and the relevant government institutions on December 31 to discuss redirecting electricity and water subsidy. On the other hand, the Energy Minister revealed that redirecting gasoline subsidy is still under study, pointing out a change in the price of Kerosene and diesel starting from January 1, 2016 while maintaining subsidy for bakeries and fishermen. He added by comparing the current and new prices of Kerosene and diesel fuel with those in other countries in the region, it has been found out that Bahrain still maintains its competitiveness even after adjusting the prices. He pointed out that according to a study by the University of Bahrain (UoB) on the repercussions of raising the price of diesel by 20%, the effects will be minimal on the economy and the living standard in Bahrain as the inflation rate is likely to go up by only 0.04%.