Stimulus packages fall flat for execution delays: ex-DCCI presidents
The government-announced stimulus packages failed to serve their purpose, which was to swiftly rejuvenate economic activities and protect jobs of millions, due to delays in their implementation, said top rated businesspeople and an economist yesterday.
Subsequently, jobs continue being lost, plenty of 16 million so far, as a result of the coronavirus pandemic which includes been severely affecting the market.
The federal government announced stimulus packages amounting to a lot more than Tk 103 lakh crore to greatly help micro, small, medium and large enterprises face the fallouts of Covid-19.
However, the majority of the enterprises, specifically the micro, cottage and little ones, are yet to avail funds from the fund for utilisation during the pandemic to avert financial and work losses.
In some cases, the problem had turned so acute that business owners of the micro, cottage and small enterprises are also losing capital as their revenue have declined significantly.
The image crisis created over a private medical center issuing fake coronavirus test certificates may have adverse impacts on the international trade of Bangladesh, said the businesspeople.
They said the Italian authorities repaid a lot more than 100 Bangladeshis the other day centring the falsification.
If something similar happens to involve businesspersons and any country transmits them back, the image crisis would severely affect Bangladesh's international trade.
"So, we should do something immediately in order that our image can be brightened and rebuilt before the world and no one falls victim to being told to return in virtually any airport of the world," said Sabur Khan, a previous president of the Dhaka Chamber of Commerce and Industry (DCCI).
"I also believe that this is the time to establish good governance," he told a good virtual debate on "Bi-annual economical state and potential stance of Bangladesh overall economy: private sector perspective" organised by the DCCI.
Nine ex - DCCI presidents, an economistand Setting up Minister MA Mannan participated at the function which was moderated by incumbent DCCI President Shams Mahmud.
Khan's views were echoed by Mannan.
"Unfortunately a few people have already been damaging our photograph during this time of crisis as well as the time of rebounding," he said.
The minister cited the exemplory case of Vietnam, saying that the united states has so far been successful in tackling the pandemic and safeguarding the economy with discipline.
He said the government was struggling to disburse funds from the social back-up programmes for many beneficiaries as they don't have bank or portable financial service accounts.
Mannan suggested that businesspeople explore export probable of the Asian market segments such as for example China, India, Japan, Sri Lanka and Nepal for increasing the country's trade.
"You can also execute a lot of business despite having Myanmar although there are a few concerns," the minister said.
He also highlighted the need for obtaining observer position found in the Association of Southeast Asian Countries to expand trade with the member claims.
Among the former DCCI presidents, Benjir Ahmed suggested that the government bring reforms in policies so that Chinese investment alongside operate orders for the garment sector could quickly reach Bangladesh.
For example, 21 types of permissions are necessary for starting a garment factory in Bangladesh which is very discouraging for business owners, he said.
Ahmed suggested quick implementation of the stimulus bundles so that nobody finished up losing their jobs.
The Italian incident could have a negative effect on international trade of Bangladesh, said another former DCCI president, Sayeeful Islam. He as well advocated for exploring chances in China.
Aftab Ul Islam suggested that entrepreneurs meet their financial necessities from the administrative centre market in order that the pressure on the banking sector could reduce significantly.
If the business owners take cash from the capital markets for investment instead of from the bank operating system, the percentage of nonperforming loans may also decline.
He also suggested that the federal government go for low priced borrowing from external resources to reduce reliance on the banking sector.
MH Rahman said the reduction in inflow of foreign remittance would usher a financial crisis which would affect the demand area of the consumers.
Decreasing demand will affect creation in the factories and so result in unemployment. So Bangladesh needs to attract foreign direct expenditure from China nowadays, he said.
Hossain Khaled, managing director of the Anwar Group of Sectors, said borrowing at night predetermined focus on by the government from the banking system would affect the amount of money flow to the individual sector investors.
He also suggested that the federal government go for low priced borrowing from foreign options to reduce strain on the banking sector.
Abul Kasem Khan suggested that the federal government take measures in order to avoid a repetition of the come back incident. Such incidents tarnish the picture of the united states, he said.
"Non-implementation of bailout packages is our collective failure and why don't we solve this problem collectively," he said.
Asif Ibrahim said the 11 per cent currency markets capitalisation to GDP ratio of Bangladesh was the cheapest among South Asian nations.
Therefore the ratio of nonperforming loans is also high here, he explained, adding that supplying funds to the cottage, micro and small enterprises was essential if the country wished to make the economy radiant again.
Rashed Maksud Khan needed completing the development of an effluent treatment plant for the new leather estate in Savar to ensure that local exporters could get proper prices from foreign buyers from the sales of leather.
"We must take measures to safeguard our overall occupation as some 16 million persons have already lost their careers," explained Masrur Reaz, chairman of Insurance plan Exchange, an area think-tank.
It took seven years to revive the global economy following the recession of 2007 and 2008, he said.
