Consideration to Establish a Separate Bank for Government Employees

There is no precedent anywhere in the world for establishing a separate bank exclusively for government employees. However, discussions have reportedly begun in Bangladesh to set up such an institution. A proposed name for the bank has already been suggested: “Government Employees Bank.” The National Pay Commission (NPC) has described government employees as a “salaried and sustainable class” and has initiated discussions regarding the creation of a dedicated bank for them.

Formation of the National Pay Commission

On 27 July, the government formed the National Pay Commission, appointing Zakir Ahmed Khan, former Finance Secretary and Chairman of the Palli Karma-Sahayak Foundation (PKSF), as its chairman. The commission has been instructed to submit its report within six months. It is this commission that has shown interest in establishing a bank for government employees.

Speaking to Prothom Alo on Tuesday, Zakir Ahmed Khan said: “Discussions are ongoing regarding the formation of a bank for government employees. The commission’s report may include such a recommendation—or it may not. This is not the first time a pay commission has considered a dedicated bank for government employees. The Farashuddin Commission had also made similar recommendations.”

Previous Recommendations

The National Pay Commission, led by former Bangladesh Bank Governor Mohammad Farashuddin, had made a similar recommendation in December 2014. At that time, the plan was to use 20–25 kathas of government land near Daily Bangla Mor in Dhaka to establish a bank, provisionally named “Somriddhir Sopan Bank.” The proposed paid-up capital was BDT 4 billion. However, the plan was not implemented.

Scope of the Current Commission

The current National Pay Commission under Zakir Ahmed Khan is tasked with reviewing salaries and allowances of officers and employees in:

Government, semi-government, and autonomous institutions

State-owned banks and financial institutions

Public universities

State-owned industrial enterprises

The commission’s mandate does not officially include creating a bank, yet discussions are ongoing about recommending a bank for government employees.

Officials from Bangladesh Bank and the Ministry of Finance have stated that there is no precedent globally for a separate bank exclusively for government employees.

Economist and financial advisor Salehuddin Ahmed, contacted from the United States, declined to comment on the matter.