By Xinhua,
Dhaka : The International Monetary Fund (IMF)has suggested the Bangladesh caretaker government to raise public wages in phases to keep its fiscal burden manageable.
Increases in pay scales will need to be phased in to make the fiscal burden manageable, IMF said in Bangladesh — 2008 Article IV Consultation: Concluding Statement.
The IMF’s Article IV Consultation, received here on Friday, made the suggestion following the Bangladeshi government’s recent announcement that it would form a national pay commission soon for increasing the wages of the public sector employees.
Inflation is likely to return to double digits in July and remain there throughout the 2008-09 fiscal year (from July 2008 to June 2009) because of high credit growth and government spending, emerging wage pressures, soaring international commodity prices, said the IMF.