"Those who give us money, the IMF and the World Bank, have reservations about the pay scale," said Saifur on return from US and Turkey after an 11-day trip.

"They have told us to implement the pay scale in accordance with our capability, keeping in mind that it does not affect the inflation rate," he added.

Speaking to reporters at Zia International Airport, Saifur pointed out, "The government can afford the secretary committee recommendations on the new pay scale."

The pay commission had proposed about 90 percent pay hike, but the secretary committee recommended a 60 percent increase considering the government's capacity.

Former cabinet secretary Mujibul Huq, who headed the pay commission, however said the recommendations were made considering the government's capability and inflation.

He told BBC Bangla Service last night that when the government said it would not achieve desired revenue growth this fiscal year, the commission recommended implementation of the new pay scale in phases.

About the impact of the new pay scale on inflation, he said there was already an inflationary trend. So it should be considered whether the salary needs to be increased for inflation or the increased salary would lead to higher inflation.

He suggested balancing the two sides by tightening unproductive expenditures.

During his visit to Washington, Saifur met the new World Bank (WB) president, managing director of the International Monetary Fund (IMF), director of the USAID, and six US congressmen and senators.

Saifur requested the WB president to strengthen cooperation for poverty alleviation in Bangladesh. "He said cooperation will continue, but to make it more effective, we need good governance. Otherwise money alone cannot make any impact."

The WB president also noted that in order to continue the democratic process, the country must come out of the politics of conflict, Saifur said.

On the issue of increasing interest rates, both the WB and IMF said that the whole world is coming out from the "low interest regime."

The WB has committed $800 million loan this year. Of this, $300 million will be pumped in as development support credit. Health, Nutrition and Population Sector Programme will get another $300 million and flood rehabilitation $200 million.

On the issue of the IMF's $80 million fourth tranche of the Poverty Reduction Growth Facilities (PRGF) loan that has remained suspended from January this year, Saifur said, "They will soon release this loan."

As part of fulfilment of an IMF condition, the government has invited tender for the privatisation of Rupali Bank. The IMF, now satisfied with this move, has decided to release the fund, Saifur said.

"The tender has generated much enthusiasm among international bidders," Saifur said. "When I made a stopover in London while returning from Washington, some people told me that they want to buy Rupali Bank," he added.