Prime Minister Sheikh Hasina yesterday asked her cabinet colleagues concerned to take all possible steps to stop unreasonable price hike of essentials. particularly that of rice and onion.

She gave the directive in the weekly cabinet meeting held at her office yesterday afternoon.

The cabinet also approved, in principle, a draft legislation seeking setUng up of tne proposed Employment Bank. The PM asked Law, Justice and Parliamentary Affairs Minister Abdul. Matin Khashru tq get the bill vetted by his ministry within a week.

In the beginning, the Prime Minister wanted to know the latest situation on the pricehike of certain consumer goods and warned her colleagues that the opposition parties would take political advantage of the situation, in case the government failed to keep the situation under control. Telecommunications Minister Mohammad Nasim also echoed the

Prime Minister.

Commerce and Industries Minister Tofael Ahmed and Food and Agriculture Minister Matia Chowdhury briefed the cabinet about the price situation and the measures they have taken so far to keep the situation under control.

They told the cabinet that the Open Market Sale (OMS) of rice across the country had already contributed to stabilise the rice price. The ministers also said that arrangements have been made for the private sector traders to import sufficient quantity of rice.

On the reported price hike of salt, the ministers told the cabinet that the private sector salt production was very good this year and there was no reason for scarcity of this essential item. They explained the sudden rise of salt price as "a conspiracy of certain quarter against the government" and assured the PM that measures had already been taken to

tackle the situation.

The ministers concerned, however, found some rationale in the price hike of onion, as "onion production has really suffered a setback in both Bangladesh and the neighboring countries." The Commerce Minister informed the cabinet that arrangements have already been made to import sufficient quantity of onions in the private sector.

Later, the cabinet approved a draft bill seeking to set up an Employment Bank. The EB, modeled after the Grameen Bank, will provide financial assistance to the income generating projects run by the youths.

The bank which Is scheduled to start operation with a paid-up capital of Tk 50 crore from the public exchequer, will have an authorised capital of Tk 300 crore. Rest of the money would come from different commercial banks and financial institutions. The capital will be divided into three crore ordinary shares worth Tk 100 each.

According to the draft bill, the bank will be set up under the supervision of the Bangladesh Bank, while a 15 member management committee headed by a chairman will run the bank. The BB will appoint the executive director of the Institution. Among other organisations. Youth Development Directorate. Social Welfare Directorate and the Labour and Manpower Directorate will have one representative each in the management committee, while five representatives would come from shareholders.