Utilisation of revenue from petrol and natural gas to be probed

Utilisation of revenue from petrol and natural gas to be probed

Published on Wednesday, 30 November -0001 06:24

 

The Centre for Economic and Social Development and Extractive Industries Transparency Initiative (EITI) will check the use of income from petrol and natural gas for the infrastructure of the nation, Dr Myint, chief economic adviser to the president, said on November 16.

"We need to check what the government is using it for or where it is using. We will cooperate with EITI and we will follow their advice. Besides, we will work together with the National investment Committee," he said.

"Natural gas will run out. We have to make future plans for our next generation in terms of infrastructure, and build new factories," he said.

"Myanmar earned US$2.5 billion from sale of natural gas in 2010-2011. The amount is 32.6 per cent of total export income. The natural gas survey paper from the US shows that the revenue from Myanmar offshore natural gas is missing. The money went into the pockets of the rich. The bribery happened. We need to administer so that it does not happen," he said.

"Myanmar earns high value from sale of petrol, natural gas, jewels and jades. If the government uses better judgement in using the income well, it will not face the resource curse," Maw Than, patron of the National Economic and Social Advisory Council and a former rector at Yangon Economics Institute, said.

The income from natural gas has been growing every year and reached US$1.7 billion for the period April 2012 to the end of September 2012 this fiscal year, according to export statistics.

Myanmar earned the most income from natural gas in 2011-2012, amounting to more than $3.46 billion, according to Ministry of Commerce figures.

Although there are problems with instability in market prices, the increasing exchange rate and misuse of income from natural resources will counter with good management, Dr Joseph Eugene Stiglitz, an American economist and a professor at Columbia University, said at a business meeting on February 11, 2012.

If one country has plenty of natural resources, it is an advantage. But on the other hand, it will also be a curse. The United Nations has issued a warning about the resource curse in its study this year. Natural resources that are limited have to be used rightfully and not wasted, the professor said during his trip to Myanmar.

 

Source: http://www.news.myanmaronlinecentre.com/2012/11/18/utilisation-of-revenue-from-petrol-and-natural-gas-to-be-probed/