Salary hikes should be logically equitable for both public and private sector employees: Abdul Mazid
Former chairman of the National Board of Revenue Muhammad Abdul Mazid has urged the government to assess the impacts of salary hikes for government employees on the private sector.
Citing news reports, he said government employees' salaries are going to be increased at a percentage rate following the unabated inflation.
Speaking at a television talk-show today, Mazid said, "Perhaps there is a rationale, at least from the government officials' side, for the salary hike as the last pay scale was announced in 2015.
"But we all can remember how the pay scale penetrated the commodity market, particularly the food market, while the private sector employees were affected most because of being spared from a similar salary hike."
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He said, "Before increasing the salary of government officials, I believe, the government should understand whether it is adaptive too to the private sector or not. Only the salary hike for the government employees will otherwise be discriminatory to the private sector people."
About inflation, Mazid said that the current inflation rate is around 9% and it is about to increase to two digits soon.
He said the budget will set a 6% rate of inflation target, depending on the consistent GDP growth at 7.5%.
"However, the most challenging part of this budget will be the imbalance between GDP growth expectation and the increasing trend of inflation. It will eat the entire benefit of GDP growth and the common people will not be relieved from price hike, if the inflation rate is brought under control," Mazid said, adding that the target [limiting inflation rate within 6%] is noble but it needs to be substantiated through evidence and results.
Mazid also expressed his concern about limiting import of raw materials as he predicted that it would increase the production cost of industrial products and further increase the commodity prices.
