Local industries need govt support to tackle impact: Experts
In addition to the stimulus package for export-oriented industries, economists and local industrialists stressed the necessity for policy support and incentives for the neighborhood industries and manufacturers to tackle the long-term economical impact caused by Coronavirus.
The government has come up with a stimulus package for export-oriented industries to help limit the financial impact of the Covid-19 pandemic, affecting 198 countries and territories all over the world.
Prime Minister Sheikh Hasina on Wednesday announced the package of Tk 50 billion for export-oriented industries.
The fund can be used to pay the salaries of the workers, said the prime minister while addressing the nation.
Praising the incentive package for export-oriented industries, they observed that industries that do not export products but feed the neighborhood markets and donate to the national economy would also need support.
So there must be some policy support and incentives for other industries and their employees so that they are able to cope up with the changing reality, they said.
Economist Khondkar Ibrahim Khaled said every unit of business is required to involve some support system to cope with the losses due to this global pandemic.
“A large number of folks are engaged with trade and business out from the export-oriented sector. A clear guideline and support will be asked to save those businesses and their workers,” he said, adding that the informal sector should get incentives aswell.
Ibrahim Khaled, also a former deputy governor of Bangladesh Bank, said the stimulus or incentives ought to be spent properly. “Ensuring accountability can help fight the challenges more efficiently.”
Bangladesh Bank (BB) has already some initiative like relaxing the loan repayment system.
Tofazzal Hossain, a jute products producer who owns Immense Trading House Ltd, said that the jute sector largely meets the demand of local needs and has been hit hard by the Coronavirus outbreak.
“This sector which includes 300 industries is going through a series of challenges,” he said, adding that the jute sector needs policy support in coming days to tackle the impact of the global pandemic.
Mir Nasir Hossain, a former President of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), said local industries and import substitutes companies also need support from the federal government to tackle the crisis.
“Employment will be hit hard because of the coronavirus outbreak in local industries. Taking notice of the facts, local manufacturers also need some support,” he added.
The export-earning industries bring forex while local industries like food and allied, agriculture, cement, paper, engineering, light engineering, IT, power and more sectors are the key to a balanced economy.
CPD Distinguished Fellow Dr Mustafizur Rahman said aside from export-oriented industries, local industries would directly get damaged by the pandemic.
“These sectors will also need government’s support.”
