Coronavirus will not have any adverse impact on Bangladesh’s GDP growth rate though the pathogen has posed a serious threat across the world, says a report. The report prepared by the finance ministry, however, says coronavirus would cast an adverse impact on the country’s export and import, and production in industries, factories and agriculture.
But it will have no negative impact on Gross Domestic Product (GDP) growth rate, asserts the report, which has already been sent to the Prime Minister’s Office, sources in the finance ministry said. Earlier Finance Minister AHM Mustafa Kamal expressed his optimism that the GDP growth rate in the current fiscal year (FY19) would reach near 8.20 percent surpassing the target of 7.8 percent.
The report says Bangladesh would not have to face any difficulties in achieving GDP growth rate of 8.20 percent. According to the report, increased remittance inflow from foreign countries will strengthen the country’s economy. Besides, increase in expenditure of various development works now being implemented under the Annual Development Programme, side by side implementation of mega projects will have a positive impact on country’s macroeconomics.
Apart from these, many foreign countries will invest in special economic zones since an investment-friendly environment is prevailing in Bangladesh and the government is offering many facilities to global investors for attracting more foreign direct investment, the report says. So the investment flow will continue that will contribute to gearing up the country’s overall economy, the report adds.
Taka 523,190 crore (5.23 trillion) national budget was passed for 2019-20 fiscal year under the theme “Bangladesh on a Pathway to Prosperity: Time is Ours, Time for Bangladesh” targeting to achieve 8.20 percent GDP growth rate. On the other hand, the government has set a Taka 377,810 crore (3.78 trillion) revenue target for the National Board of Revenue (NBR) in the national budget for 2019-20 fiscal year.
Depending on planned tax management steps, total revenue collection has been estimated at Taka 377,810 crore (3.77 trillion) in 2019-20 fiscal year. Out of this, Taka 325,660 crore (3.25 trillion) is being collected through the NBR. Tax revenue from non-NBR sources has been estimated at Taka 14,500 crore (145 billion). Besides, the estimated non-tax revenue is Taka 37,710 crore (377 billion).
The finance ministry report asserts that Bangladesh continues to make progress in different sectors but says the government may face several challenges to collect the targeted revenue. The shadow of coronavirus, however, hangs over the country’s financial, industrial, trade and business, export and import, revenue collection, tourism, pharmaceuticals, electrical goods and essential commodities sectors which are vital to country’s economy.
Import of raw materials for various industries, equipment and China-based goods declined sharply in the last one month. According to Chittagong Port Authority, imports of goods from China declined by about 26 percent in the last one month thus reducing the revenue earning worth Taka 500 crore.
Besides, export of many goods like hide, leather products and garments accessories to China remain suspended, triggering fear of loss worth about Taka 3,000 crore among businesses. The number of confirmed coronavirus cases worldwide has reached nearly 87,000 as of Sunday, with more than 7,000 cases outside mainland China, where the outbreak began late last year. The death toll in the virus, which has been detected in at least 60 countries, has climbed toward 3,000.
