IMF loan to provide temporary relief to economy: Planning minister
ILO asks for an increase in the wages of tea workers and coastal fishermen
IMF loans will provide temporary relief to the economy, but the government at the same time has some more work to do, which if not done, will risk the country's economic sustainability, Planning Minister MA Mannan has said.
"We should work on the issues [loan conditions] that the International Monetary Fund is bringing forth during the loan negotiations. Various reforms are discussed globally, we also talk about reforms. Besides, we have to reduce wastage in various sectors including electricity and fuel," he told the media after holding a meeting with an International Labor Organisation (ILO) delegation led by its SME Specialist Gunjan Dallakoti.
If subsidies are reduced, prices of gas, electricity, and oil may increase, Minister Mannan noted, adding, "Prices of oil and gas increase in the local market because of the international market volatility, and there is nothing we can do in this respect. If the prices go up in the international market, we also are forced to increase.
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He also pointed out that salaries and wages of people have not increased in proportion to the upsurge in inflation.
"We should keep in mind the main reasons for inflation. This is not a failure of our market. Our domestic market is now deeply connected to the global market. The pressures of other markets have spilled over into our market."
Planning Minister MA Mannan also said the ILO had asked for an increase in the wages of tea workers and coastal fishermen.
"We have recently increased the wages of tea workers. There will be further wage hikes in the future…. I think we should address the issue of increasing the wages of tea workers and fishermen in coastal areas," he concluded.
