Stimuli accelerate economic recovery


The dark clouds of Bangladesh’s economy, triggered by the coronavirus pandemic, seems to be disappearing with workplaces getting pace and various fiscal and monetary measures taken by the government to heal the wounds of the national economy.

The positive note of the country’s economy has been sounded by Bangladesh Bureau of Statistics’ (BBS) study.

The recent BBS’2020 (Covid-19 Bangladesh) study found that the unemployment rate rose tenfold in July, but dropped to four percent at the end of September. The number of unemployed rate has increased 10 times at the beginning of Corona but now it has started showing a downward trend. 

According to the survey report, 68.39 percent of the people in the epidemic faced financial problems in one way or another. During that time, 21.33 percent of the families received assistance or relief. Of these, 94.44 percent received government assistance.

The government has announced 21 stimulus packages worth around Tk 15 lakh crore to keep the country's economy buoyant in the face of the coronavirus epidemic.

Entrepreneurs in various sectors-- large and small-- have already received more than half of this incentive as loans. As a result, the flow of credit to the private sector is increasing. 

At the same time, with the re-opening of mills, industrial hubs and shops, economic activities have started to turn around. Therefore, employment has also increased.

On June 30, the finance department disbursed Tk 1,000 crore to boost employment. The loan disbursement process has started through Karmasangsthan Bank, PrabasiKalyan Bank, PalliSanchay Bank, and PalliKarma-Sahayak Foundation (PKSF).

Each organization will distribute two and a half crore of taka. This money will be given as a loan for the employment of youths returning from abroad and other unemployed youths.

Economist Abdur Rahman told The Bangladesh Post, that“The role of stimulus packages amid the pandemic on the economy cannot be denied. People have heaved a sigh of relief after that.”

He said Bangladesh's economy is recovering from the effects of the epidemic. Despite significant pressures on health and corona management, the government has consolidated the economy with adequate economic stimulus and social security measures to ensure basic services for the poor and needy, he added.

Earlier on Tuesday Prime Minister Sheikh Hasina has said the timely incentive packages given by her government in the wake of COVID-19 are helping keep the country's economy brisk.

"We have given various incentive packages to industries and other sectors as well as agriculture. The government has given separate incentive packages to small, medium, large, and garment industries,” she added.