Salary hikes of government employees will revive commercial sector, ACC Chairman says

Alanbatnews - The increase on the government employees' and retirees' salaries is an "important step" and will be positively reflected on most of the trade sectors, Chairman of Amman Chamber of Commerce(ACC) Khalil El Haj Tawfiq said.

In an interview with "Petra," El Haj Tawfiq expected that the salary hikes will raise consumption rates and demand on basic needs and improve the citizens' living standards, which contribute to increasing the Gross Domestic Product (GDP) and reviving economic growth.

His Majesty's directives to the government were "clear" and aimed at upgrading the citizen’s conditions, the chairman said, adding improving incomes and increasing consumption level would generate more revenues and reduce the deficit.

Continuing:" Such salaries raise is important, but not sufficient, and should be followed by quick decisions and procedures in reducing sales tax, customs duties and energy prices, El Haj Tawfiq noted, calling for adopting new economic measures that revitalize the national economy, reduce the cost of borrowing, and stimulate the commercial and service sectors".

Haji Tawfiq also stressed the importance of boosting partnership with the private sector and giving it a bigger say in economic decision-making.

However, he cited "an unprecedented recession" hitting the commercial activity, urging the government to pay more attention to the commercial sector.

Last Thursday, the government has launched its 3rd economic stimulus package, focusing on raising efficiency of public sector and improving the citizens' living standards, coming within an economic program to stimulate economy growth and improve services.

During the launch event, the government announced the amount of salary hikes of workers and pensioners in the government and military services, which is scheduled to be implemented in early 2020, in line with the Royal directives to improve the citizens' living standards.