Govt unlikely to announce new pay scale before IMF talks conclude

The government is unlikely to announce the ninth national pay scale for public sector employees before completing negotiations with the International Monetary Fund (IMF) on a new loan programme in October, according to officials.

The IMF has advised Bangladesh to delay implementing a new pay scale for at least two years, citing weak revenue collection, a widening fiscal deficit and growing spending on subsidies and social safety net programmes. Officials said the government’s final decision will largely depend on the outcome of the IMF discussions, scheduled alongside the World Bank-IMF Annual Meetings in Bangkok in October.

Although the government has not abandoned the plan, it is considering options such as a phased implementation to reduce the financial burden. A high-level committee has already prepared a revised pay scale proposal and submitted it to the finance ministry and the prime minister.

The proposed pay structure would significantly raise salaries and allowances for government employees, but officials estimate it would require an additional Tk 106,000 crore annually. Economists say a salary revision is overdue, as public sector pay has remained unchanged since 2015, but they also warn that implementing it without stronger revenue growth could increase the country’s fiscal and borrowing pressures.