Increase in investment, revenue collection and new job creation must get top priority from the very beginning of this New Year in order to rejuvenate the country’s financial sector as the second wave of Covid-19 pandemic is now sweeping across the world, experts said.
They termed those factors the major key role player in the face of the winter wave of Covid-19. Besides, they underscored the importance of restructuring the health and education sectors, including controlling the rise in food prices, equitable distribution of incentives during corona, universal social security and ensuring corona vaccine for all.
It is possible to recover the country's economy early, if the government can tackle those challenges squarely and quickly, they added.
Policy Research Institute (PRI) Executive Director Ahsan H Mansoor said that, "Coronavirus has caused severe problem for almost all sectors of the economy. Six months of this financial year already elapsed, but revenue collection is very poor against the target. Now it's a big challenge to increase revenue collection.”
"On the other hand, it was expected that the second wave of corona would end by March which is now likely to extend to June-July. This means this fiscal year will not be free of Covid-19. As a result, more emphasis needs to be placed on ensuring the coronavirus vaccine in the new year", Ahsan added.
He also put importance to increase investment to overcome this situation. He said, "Investment including the government, private, and foreign must be increased. First of all, the banking sector has to be reinvestigated. It is also important to increase the government's revenue and exports".
Negative trend in revenue collection has been noticed since the beginning of the this financial year. This is mainly due to the decline in import-export activities, which has affected the overall revenue collection. In the first five months of the financial year (July-November) the revenue collection target was Tk 112959 crore. On the other hand, Tk 8,792 crore has been recovered, which is 23 percent less than the target.
However, the government's early decision of incentive packages for different sectors to deal with the impact of coronavirus has given a better feedback to the country's economy. To face the second wave and minimise risk the government is preparing to announce second incentive package.
Prime Minister Sheikh Hasina directed the authorities concerned to prepare an incentive package amid the second wave of pandemic.
In the midst of all this, there is a glimmer of hope. The economy has not gone as far as expected. The coronavirus vaccine has already been discovered. It is likely to arrive in the country within this month. This has increased the confidence of the people.
Eminent economist and chairman of Palli Karma Sahayak Foundation (PKSF) Dr Qazi Kholiquzzaman Ahmad said, "The government has been able to manage prudently the country’s overall agriculture and industrial sectors through announcing Taka 1.21 lakh crore stimulus packages. Side by side various effective measures were undertaken to save the economy and help maintain the livelihood of poor section of people."
He said cash support and other assistances were provided to some 2.5 crore marginal people of various classes for which there was no such shock in the country’s economy while the trade and commerce has also staged a comeback.
Finance Minister AHM Mustafa Kamal is hopeful and said that the country's economy will perform better this year. He said, “We are in a good position in every index of our economy and we are making progress in all areas."
