The implementation of a new national pay scale may create some risk of higher inflation in Bangladesh, said Prime Minister’s Adviser for Information and Broadcasting Dr Zahed Ur Rahman.
However, he clarified that the new pay scale would not mean that the salaries of all government employees would double.
He made the remarks while responding to questions from journalists at a press conference held at the Secretariat on Tuesday to brief the media on the progress of various government activities.
Asked about the possible impact of the new pay scale on the market and the government’s preparations to address it, Zahed said an inflation rate of 5 to 6 percent could be considered tolerable in Bangladesh. He noted that inflation had remained in double digits for a long period and at one point exceeded 10 percent, although it has declined somewhat recently.
He said there could be some inflationary pressure if the salaries of a large number of people increased. However, he stressed that all government employees would not receive a 100 percent salary increase immediately after the new pay scale comes into effect.
According to the adviser, as no new pay scale has been introduced for a long time, many government employees have already moved closer to the proposed new pay scale through regular annual increments. As a result, their salaries may not rise significantly once the new scale is implemented.
Explaining the claim that salaries would increase by 100 percent under the new scale, Zahed said such information might give the impression that everyone’s salary would double. In reality, this would not be the case, particularly for senior employees whose salaries are already close to the levels proposed under the new pay structure.
Regarding measures to control inflation, he said Bangladesh Bank would use various policy tools at its disposal to address the factors driving inflation. The government would also take necessary regulatory measures, he added.
Zahed also stressed the importance of protecting vulnerable groups from the impact of inflation. He said the government was making efforts to provide as much support as possible to people most exposed to rising prices.
Referring to the Family Card programme, he said the government aims to bring 4 million families under the programme by the end of the year. Work is currently progressing intensively to prepare an accurate list through several stages of verification.
He said that assuming an average of five members per family, nearly 20 million people from 4 million families would come under the support programme. The government aims to provide monthly assistance to the most vulnerable families.
He added that the coverage of food assistance programmes, open-market sales of essential food items and sales through the Trading Corporation of Bangladesh (TCB) had also been expanded. These initiatives are intended to help protect vulnerable groups from the pressure of inflation.
The adviser also spoke about the country’s electricity situation, saying that increased investment would be possible if the power crisis eased. This, in turn, would help reduce people’s hardships, he added.
