The process of disbursement of the Tk100,000 crore stimulus package announced by Prime Minister Sheikh Hasina to overcome the economic crisis due to the virus pandemic has been initiated. Earlier, following the announcement of the Prime Minister, the finance ministry prepared a policy and guideline in this regard. Now the central bank is acting to disburse the package as per the policy and guideline, sources said.
The Prime Minister’s Office (PMO) will closely monitor the entire process to ensure quick and proper economic development through the implementation of the package. As part of the disbursement process, Bangladesh Bank has started to pay the wages of the workers of the export-oriented garment sector for the next three months. The workers will get their payments through mobile banking from April 30, a finance ministry official said.
People from all walks of life hailed the Prime Minister Sheikh Hasina’s announcement of the stimulus package as a bold, courageous, time befitting and an effective step to overcome the country’s overall economic crisis caused by the virus pandemic. However, experts stressed the need for the proper use of the money by the receivers of the package. They also urged that all the sectors that will receive the money must be transparent and accountable regarding spending their allocated amount.
Otherwise, it will be a big blow to the country’s economy, and the Prime Minister’s all initiatives and efforts will go in vain, they added. In this context, Finance Minister AHM Mustafa Kamal said, “Works have been started to disburse the incentive package announced by the Prime Minister. Most importance is being given to saving human lives.”
“The government’s aim is to prevent every single person from starving during the ongoing coronavirus pandemic. In addition, agricultural production will be increased to strengthen food security.” Kamal further said that all sectors of the country have already been affected due to the virus pandemic. The government is aware of this and working sincerely so that every affected sector gets the allotment from the incentive package.
Not only that, the country’s economy will be brought back to normalcy by implementing this incentive package, he said adding that that government has also sought for additional allocations from the donor agencies. Joint Secretary (Budget) of the Ministry of Finance Sirajun Nur Chowdhury said, “There will be a pressure on the full implementation of the Annual Development Programme (ADP) this year due to corona pandemic.”
“As a result, ADP's unspent money can be a major source of funding for the stimulus package,” he said Former Bangladesh Bank governor Atiur Rahman told Bangladesh Post that the global economy has witnessed a falling trend due to the corona crisis. Almost all sectors of the country have been affected by the virus pandemic but the government has already announced a package to overcome the crisis, he added.
However, despite the challenges in implementing this package, it is not impossible, he opined. Hopefully, the economy will be able to turn around through the implementation of the package, said Atiur.
The allotment of the Tk100,000 crore stimulus package has been outlined as follows- Tk 30,000 crore in industrial credit, Tk 20,000 crore for small and medium enterprises, Tk 12,750 crore for Bangladesh Bank's Export Development Fund (EDF), Tk 5,000 crore in agriculture, Tk 5,000 crore for pre-shipment credit reference scheme and Tk 5,000 crore for payment of salaries and allowances of the workers of export-oriented industries.
Besides, various incentive packages worth Tk 21,739 crore including cash assistance worth Tk 761 crore were announced for low-income people.