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Coronavirus Pandemic

Govt must stand by private sector: Experts

Published : 08 Jun 2020 09:52 PM | Updated : 05 Sep 2020 08:37 PM

The government and the non-government organisations will have to map out an immediate way out on how to protect jobs in the private sector during and post novel coronavirus pandemic situation, experts say.

 They said like other foreign countries, many people in Bangladesh have lost their jobs due to the effects of the Covid-19 crisis and the unemployment situation may worsen further in the future

 “The Covid-19 has already started impacting the private sector negatively as most of country’s private business organisations and other institutions are struggling to survive. 

So, an urgent but effective plan will have to be framed to protect the private business establishments and their employees. In this situation the government must come forward and stand beside both private organisations and the employees,” said economics professor Tofazzal Hossain. 

The expert said, “The pandemic continued to affect all activities specially the businesses in advanced economies, forcing many organiations to go for job cut.”

Citing some news regarding lay off, he urged the authorities concerned to pay special attention to overcome this situation.

Corona has reduced city people’s income by 75 percent and rural income by 62 percent, according to a report by research firm Power and Participation Research Centre (PPRC) and the BRAC Institute of Governance and Development (BIGD) entitled ‘Livelihood, Loss and Assistance during Covid-19’. 

Three crore 69 lakh 44 thousand people have become poor due to unemployment. Before Corona, 3 crore 30 lakhs people were poor. In all, 7 crore people are unemployed and living in poverty due to the Corona.

Entrepreneurs fear that the days ahead will be more challenging for all industries, not just for the garment industry. Despite the huge expansion of the textile industry in the country, the industry is faced with crisis in the current situation. 

The country is witnessing closure of factories, no businesses and the increase of fear of losing jobs. Not only the superiors of the organizations, but also the lower level employees are at risk of losing their jobs. 

Some of the well-known corporate houses in Bangladesh did not pay salaries and allowances before the Eid. However, the issue of financial security during the Coronation period was more urgent.

In this purview economist Muhammad Mahbub Ali said, “Next year's budget is being given at this time of Corona. Effective steps need to be taken in this budget to revive employment and the economy.”

“People whose income have decreased due to corona should be brought under the social security net. Allocations for them should be increased,” he added.

He also highlighted that, it was important to ensure transparency and accountability in order to properly deliver aid to the victims.

According to a March 6 report by the Asian Development Bank (ADB), Bangladesh could lose more than Tk 25,670 crore in gross domestic product (GDP).

The report mentioned that, if the Corona situation gets worsened, the impact can be felt in five sectors of Bangladesh. The biggest loss will be in the trade and commerce sector, which is equivalent to Tk 9,690 crore. 

Besides, the potential loss will be Tk 5,355 crore in agriculture, Tk 4,335 crore in tourism, hotel, restaurant and A-related services, Tk 3,400 crore in manufacturing and construction and Tk 2,805 crore in transport.