Like many other countries of the world, businessmen of Bangladesh are now in the grip of worry and seeing bleak future as the COVID-19 is continuing to take toll along with prolonged duration, experts said. While the coronavirus pandemic is getting longer in the country, businessmen in all sectors have been put in peril for shutting down their businesses due to the supply chain disruption, they mentioned.
The government has ordered a suspension of all modes of transports and shut down all shops and markets except pharmacy and grocery stores as part of its efforts to enforce social distancing effectively in order to slow the spread of coronavirus. Market analysts said the outbreak of the virus in the world has dealt a heavy blow to the global supply chain.
Bangladesh’s businessmen are faced with many big challenges in trade and investment, exports, imports and domestic trade, they mentioned. Conoravirus epidemic immensely has disrupted the trading of garments, leather and leather products, apparel sector accessories, cosmetics, printing industry, medical equipment, computers and parts and electronic products.
In order to overcome this situation, Prime Minister Sheikh Hasina’s announcement of incentive package for all sectors is a bold, courageous, time befitting and an effective step for the country’s overall economic shock, economists said. However, experts asked the all sectors, which will get the incentives at this crisis, to ensure the proper use of money.
Businessmen said they are worried and in real danger as their businesses have almost been shut down due to the supply chain disruption caused by the coronavirus. If this situation continues, they have to pay huge losses, they said. They said if they cannot run the businesses for a long time, they would hardly be able to pay salaries to employees, rent and different bills as well as bank loans.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Rubana Huq said, “We are passing very difficult time in the garment industry due to the spread of pandemic coronavirus as foreign buyers are cancelling their placed work orders.” So far, $3.15 billion (Tk 25,000 crore) purchase order has been canceled, she mentioned.
The country’s export earnings also have rapidly decreased by more than 84 percent, she said. If this situation would continue for a long time, many companies cannot afford to bear losses, she added. As a result, huge employees would lose their jobs, she added. Bangladesh Tanners Association (BTA) President Shaheen Ahmed told The Bangladesh Post that, “Coronavirus has had a huge negative impact not only on the garment sector but also on the leather industry.”
“The leather industry has lost Tk 450 crore. If this continues, the amount of damage will increase manifold”, he added. “We usually export to China, the USA, Italy and Germany. All these countries are facing huge crisis for coronavirus pandemic,” he mentioned. Bangladesh Shop Owners Association President Mohammad Helal Uddin said, “We have closed the shops as per the government directive. We want the money to pay wages to the employees.”
He said currently it has become very difficult for them to pay the shop rent. “Paying wages to the employees has become even more difficult for them. If no special fund is allocated for them, lakhs of workers will be put in danger”, he added.
Eminent economist Zahid Hussain told The Bangladesh Post that “Bangladesh is going to facing many challenges as coronavirus has broken down all activities of the country.” He mentioned most of the workers of Bangladesh anticipated losing jobs as many companies have temporary been closed while many small businessmen are passing a critical time following coronavirus epidemic.
Hence, the government should immediately provide financial incentives to all sectors and individuals especially those who earn on a daily basis for managing adverse situation of the country, he added.
