Why IMF Recommends Against New Pay Scale Implementation Now

Amid the ongoing global crisis, particularly due to the Iran-Israel and US conflicts, Bangladesh’s economy is facing significant pressure. In this situation, the International Monetary Fund (IMF) has cautioned Bangladesh that implementing the 9th National Pay Scale at this moment would be risky. The organization believes it could further increase inflation and make it difficult for the government to maintain fiscal balance.

IMF’s Asian Department Director Krishna Srinivasan recently visited Dhaka and made this recommendation during a meeting with the Finance Minister. She noted that due to the global crisis, pressure on fuel and food sectors will rise, posing a major challenge for a vulnerable economy like Bangladesh. In such a situation, increasing salaries and allowances in the government sector could create imbalance in the private sector, as most people in the country depend on private sector employment.

Meanwhile, the government has already shifted nearly 40,000 crore taka — originally allocated for the pay scale — to the energy and subsidy sectors. Revenue shortfall and bank borrowing have also increased significantly, adding to the financial pressure. For these reasons, the government has adopted a cautious approach.

Economists believe that in the current reality, a thorough assessment of the situation is essential before implementing a new pay scale. There are also proposals to form a new pay commission for this purpose. Overall, the government is leaning towards postponing the 9th Pay Scale for the time being, following the IMF’s recommendation.