New pay scale to be made effective from July : Muhith

Finance Minister AMA Muhith said Tuesday the recommendations of Pay Commission for about 1.3 million government employees will be effective from July next.

"We will get the recommendations of the Pay Commission in December. If the report is simple, then the implementation will not take time.

"Its implementation may be delayed if any reform is needed," he said after a meeting with a six-member delegation of the International Monetary Fund (IMF).

Talking to newsmen at his Secretariat office, the minister said the report will be effective from next fiscal year no matter if its implementation requires time.

When his attention was drawn to Prime Minister Sheikh Hasina's announcement of implementing the new Pay Commission report by January next, Mr Muhith said he was not sure if its implementation in January will be possible.    

Regarding his meeting with the IMF delegation, the minister said the IMF has proposed extension of the tenure of extended credit facility (ECF). "But we don't want to extend the tenure because it is not needed. Instead, we may think about starting new programme with them."    

Mr Muhith said the government is committed to implement the new VAT law by 2015. "But during placing of the budget in the parliament, I announced that its implementation won't be possible before 2016. Because, carrying out reform for its implementation will take time."

The minister said the World Bank will provide US$500 million to Bangladesh as budgetary support for the next fiscal year for which discussion is at final stage. An agreement to this effect may be signed in current fiscal year, he said.

"The fund may be spent in strengthening local government and financial sector reforms," the minister hinted.

After the meeting, Sadharan Bima Corporation chairman M Shamsul Alam handed over a cheque of Tk 200 million as dividend for 2013 to finance minister.

syful-islam@outlook.com