Experts urge government for more stimulus packages

Experts at the dialogue on ‘Stimulus Packages for Sustainable and Inclusive Recover from COVID-19 Fallout in Bangladesh;, urged the government to roll out more stimulus packages to ensure a quick economic recovery from the impending second COVID-19 wave in Bangladesh.

The government has so far declared 21 stimulus packages worth around Tk 121,000 crore, which is 4.34 per cent of the GDP.

Of these, 14 involving Tk 33,603 crore are being financed from budget allocations, said Abdur Rouf Talukder, Senior Secretary, Finance Division, while making a keynote presentation. The remaining seven packages involving Tk 87,750 crore are being financed from the banking system, according to data from the finance ministry.

COVID-19 has seriously impacted Bangladesh’s economy like other countries, said Mercy Miyang Tembon, Country Director-Bangladesh and Bhutan, World Bank. The business slowdown stemming from the pandemic has had an adverse impact on both supply and demand sides But, the country's government has taken swift actions by way of declaring stimulus to reduce the negative impact.

However, the disbursement of stimulus packages for small and medium enterprises is sluggish as only 30 per cent of the fund was given till September, Tembon said. Given the uncertainties going forward, the government should be ready to expand the size of the stimulus packages, she added.