Massive stimulus package to overcome Covid-19 impact

Ensure economic growth amid crisis

The government has declared an an allocation of Taka 72,750 crore under a set of stimulus packages in order to overcome the possible COVID-19 impact on the country’s economy. Earlier a Tk 5,000 crore (emergency) incentive package was announced for paying salaries and allowances of export-oriented industries workers and employees.

The stimulus was announced so that the economy is able to rebound from the ongoing crisis and the country can achieve the desired economic growth. Prime Minister Sheikh Hasina said the government simultaneously took four programmes under the work plan to be implemented in phases categorized as “immediate, short and long”. These will include increasing public expenditure, formulating a stimulus package, widening social safety net coverage and increasing monetary supply.

The amount will be provided as loans from commercial banks as loans which the industries will have to pay back half while the government will pay the remaining half. The government is also focusing on cottage industries which will receive 20,000 crore taka as working capital.

The stimulus was announced so that the economy is able 

to rebound from the ongoing crisis and the country can 

achieve the desired economic growth

She said a mechanism would be devised to reach the amount to the SMEs as low-interest loans through banks which identically will disburse amounts to the SMEs on the basis of bank-client relations while the government in this case would bear the greater share of the interest amount.

The PM has stated that said local products alongside the export sector would deserve special attentions and supports to cope with the possible global and domestic economic crisis caused by the pandemic. The government will be focusing on generating employment as many are at risk of losing their jobs due to the crisis.

The coverage of the social safety net will be further widened to fulfill the basic needs of people living below the poverty line, day labourers and people who are engaged in non-formal works.

The government is also distributing food materials free of cost, selling rice at Taka 10 per KG, distributing cash among targeted communities, widening the coverage of the certain allowances for society’s vulnerable people. 

The government’s thorough plan in order to tackle the crisis caused by the coronavirus pandemic is indeed laudable. Undoubtedly the stimulus packages and other initiatives will ease the fears and uncertainty of the general people.