No major price shock expected from new pay scale: Commerce Minister

Commerce Minister Khandaker Abdul Muktadir has said the implementation of a new pay scale for government employees is unlikely to create significant pressure on the market or trigger a sudden rise in commodity prices.

He made the remarks while responding to reporters after an event on the development of the coumtry’s leather sector at BRAC Centre Inn in Dhaka’s Mohakhali on Thursday (September 3).

The minister said government employees had not received a salary adjustment for 11 years and that the move was justified given the current inflation and rising cost of living. However, the new pay structure will be implemented in phases through July next year rather than taking effect all at once.

A phased rollout will limit the amount of additional money entering the market at a single time, reducing the risk of a sudden surge in demand and commodity prices, Muktadir said.

He said inflation would depend not only on the pay scale but also on commodity supplies, imports, production costs and global market trends. The government is monitoring these factors in coordination, he added.

On edible oil prices, Muktadir said domestic prices were being set based on international market conditions as well as local production and processing costs. As soybean oil is almost entirely import-dependent, fluctuations in global prices have a direct impact on the local market, he said.

The minister said the Trading Corporation of Bangladesh (TCB) was supplying subsidised essential goods each month to around 7.8 million families. Open-truck sales during the two Eid festivals and the food ministry’s Open Market Sale (OMS) programme were also continuing.

Authorities are also monitoring whether traders are attempting to create artificial shortages and drive up commodity prices, he said.