Disburse SME stimulus fast: experts
The government should make certain that stimulus funds for the cottage, micro, little and channel enterprises (CMSMEs) are quickly disbursed in order to facilitate sustainable recovery from the Covid-19 fallouts, according to speakers at a webinar yesterday.
The function, styled "Impact of Covid-19 on CMSMEs and Understanding their Restoration: Evidence from BSCIC Industrial Estates", was jointly organised by Economic Reporters' Forum (ERF) and PRISM Programme.
While speaking as chief guest, Industries Minister Nurul Majid Mahmud Humayun said the CMSMEs were the worst influenced by the pandemic despite the fact that the government had announced a Tk 20,000 crore stimulus offer for the sector.
Another Tk 1,500 crore stimulus package was announced for business owners found in rural areas. Of the volume, Tk 300 crore was allocated for SME Basis, which disbursed Tk 100 crore from the fund in the outgoing fiscal time, he added.
Abul Kashem Khan, chairperson of Business Initiative Leading Development (BUILD), stressed in the necessity to address the barriers that prevent the CMSMEs from availing stimulus funds.
"In addition to the banking sector, an alternative solution mechanism ought to be developed for the distribution of the funds," he said, adding that formulating a good database in the CMSMEs would support ensure better policy style.
Ahsan Khan Chowdhury, chairman and chief executive officer of Pran-RFL Group, said if micro and tiny business owners were protected from the Covid-19 fallouts through financing, they could facilitate the country's full monetary recovery.
The Bangladesh Tiny and Cottage Industries Company could create links between large and small-scale industries as a way to help ensure their survival, he added.
Rizwan Rahman, president of the Dhaka Chamber of Commerce and Sector, proposed the withdrawal of progress income tax and also the tax levied about online sales to be able to spur the development of e-commerce and digitalisation of the CMSMEs.
In his demonstration, Dr Monzur Hossain, research director of the Bangladesh Institute of Development, revealed that 96 % of the country's businesses had been adversely damaged by the nationwide lockdowns aimed at curbing the distributed of Covid-19.
However, the CMSME sector recovered up to 80 % of the pre-pandemic creation levels by December 2020, he explained. Golam Yahia, additional secretary to the sectors ministry, explained the CMSMEs were participating in a big purpose towards the country's industrialisation and that Bangladesh could turn into a developed nation by 2041 by efficiently implementing the SME policy.
The function, chaired by ERF President Sharmeen Rinvy, was also attended by Rensje Teerink, europe ambassador and head of delegation to Bangladesh, and Md Mostaque Hassan, chairman of the BSCIC.
Monzur Hossain, study director of the Bangladesh Institute of Advancement Studies, and a good senior short-term consultant of the PRISM job, presented a good keynote paper.
