Finance Minister A H M Mustafa Kamal on Wednesday said that the government has adopted a policy for bringing out an inclusive, transparent financial stimulus packages with people from all sectors in mind.
"Finance Ministry is also engaging with foreign development partners in order for bringing in funds at a low cost to further boost the stimulus packages|, Minister added.
Minister made the remarks during a discussion with the leaders of the Dhaka Chamber of Commerce & Industry (DCCI) on the economic situation prevailing in the country due to coronavirus pandemic.
The Finance Minister also mentioned the programs undertaken by the government to ensure food security of people of the country and all these measures are being undertaken in a transparent way with clear identifications to ensure transparency.
Shams Mahmud, President of DCCI appreciated the proactive steps taken by the honorable Prime Minister and the Finance Ministry announcing the stimulus packages especially for micro, small & medium enterprises (MSMEs).
The DCCI President mentioned that in spite of the measures being announced, cottage, MSMEs may face hurdles in getting required access to finance from banks under the packages announced.
Most of the cottage, SMEs, MSMEs and cash-transaction-based traders may be deprived in getting stimulus funds from the banks because of the requirements of having loans and due to lack of good relation with the banks which large businesses always maintain but they are compliant in doing businesses.
As a way forward, DCCI proposes to utilize State-owned Commercial Banks (SOBs) to disburse stimulus funds particularly for MSMEs. DCCI also proposes to the Finance Ministry to chalk out a plan for a considered gradual opening up of different business sectors.
Also external international financial organizations need to be pursued to bring in low cost funds to inject into the stimulus packages. The discussion between the Finance Minister and DCCI also covered the issues of food security for the vulnerable groups and financial assistance to the workers in the informal sectors.
New MSMEs with an operational time of maximum 2 (two) years should be waived business license renewal fees, utility bills, other charges related to bank and import & export related port charges. They also need to be offered business recovery fund as working capital under re-financing scheme for two years with 1 (one) percent interest rate. Since, keeping social distance need to be continued now, e-commerce based MSMEs are playing vital role in this crisis moment.
He thus proposes to provide VAT and Tax exemptions or cash incentives to the MSMEs to engage more in e-commerce ecosystem. Informal businesses like floating traders, hawkers, floating shops, grocers and sole traders need to be brought under the social safety network and low-cost survival business recovery emergency fund can be given for their survival.
DCCI President Shams Mahmud thanked the Finance Minister and the efforts of the Ministry during this unprecedented time and taking the time to engage and take suggestions from all stakeholders.
