Business Initiative Leading Development (BUILD), a private sector think tank, on Sunday hailed the stimulus packages, announced by Prime Minister Sheikh Hasina, to fight against the impact of COVID19 on the country's economy.
"Prime Minister Sheikh Hasina has announced the 'Economic Impact and Action Plan' to fight against the potential negative impact of COVID-19.
She highlighted some impacts which would affect the present economic growth and flow of private investment in different sectors, including hotel, restaurant, aviation and transportation," according to a BUILD press release issued on Sunday.
Apprehending fall of export, shrink of domestic market, remittance flow, purchasing power because of lockdown of SMEs and large industries as well as the disruption of supply chain, Prime Minister Sheikh Hasina announced the financial stimulus package of Taka 72,750 crore which is 2.5 percent of the GDP, the release added.
Extension of Export Development Fund (EDF), reducing interest rate, support package for SMEs and suffered industries and services sector, this support will definitely work as a moral boost to the private sector and maintaining investment flow, observed BUILD.
BUILD mentioned that management of this fund will be a huge challenge to reach it to the real sufferers, for this a high powered economic strategy committee can be formed soon in which the private sector representatives can be included. Private sector chambers or associations can extend support to the committee by providing impact-analysis based information so that funding support goes to the really needed sectors and industries, it added.
With the tax and VAT relief for the time being to the desired sector can be helpful for the private sector, BUILD also observed.