The minister's comment came at a time when the government is set to make i|s foray into mobile phone marke|.

The minister was speaking at the inauguration of a three-day international seminar on "Financial Management in an Islamic Perspective" being jointly organised by Islamic Economics Research Bureau, Islami Bank Bangladesh Ltd and Islamic Development Bank in Dhaka.

"Petroleum companies worldwide are making profit. But in Bangladesh they incur loss only. Curbs on prices of petroleum products may be a reason but it cannot be the sole reason for the loss. Sheer administrative inefficiency in those companies is the prime cause of loss," he said.

The petroleum companies have accrued a bank liabilities of Tk 2,300 crore weakening not only the banking system but also the national economy. He said the entire banking system is overburdened due to state-owned enterprises.

Had those companies been in private sector, the economy would have been on stronger nooting and banking sector more robust, he said. Saifur, however, fell short of giving any hint at handing over those petroleum companies to private hands.

When asked if the government has any plan to hike prices of petroleum products, the minister said, "Yes, it is overdue." But he did not specify when and at what extent the price hike would come into force.

Saifur rued over missing opportunities of Bangladesh to become an economically sound country blaming it on political divide and instability.

"When I was a minister in 1977, we sent teachers and doctors to Malaysia. Now Malaysia is an Asian economic power. It was possible because of a stable political situation there," Saifur said.

On Islamic banking, the minister said it is getting popularity day by day. Apart from banking, Islamic insurance, mutual funds and bonds are hitting market. More diversified products can be introduced in Islamic system.

He reiterated his call to reduce the spread between deposit and lending rate. Banks offer 5-6 percent interest to depositors while charge 12-14 percent to borrowers, he said. "This is not fair."

Addressing the function, Shah Abdul Hannan, chairman of Islamic Economics Research Bureau, called for legislation for Islamic banking and other financial services under Shariah laws.

Ali Ahsan Mohammad Mojaheed, minister for social welfare, Habib Ahmad, economist at Islamic Development Bank, and Nazir Ahmed, chairman of Islami Bank Bangladesh Limited, also spoke at the inauguration.