Speakers at a programme on Sunday suggested a host of measures to help the country's economy weather Covid-19 fallout.
The measures include mid- and long-term plans to generate new employment opportunities, allure more foreign investment, attract more domestic investment, and ensure substantial flow of funds for the private sector.
They also underscored the need for injecting more funds into the economy, facilitating ease of doing business, developing skill level of workers, ensuring food safety of people, and further expanding social safety net schemes.
Views were expressed at a webinar - 'Bangladesh's COVID-19, Stimulus, Economic Sustainability, Recovery, Domestic Investment, Foreign Direct Investment (FDI) and Outward Foreign Direct Investment (OFDI).'
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) organised the virtual event, with its President Sheikh Fazle Fahim in the chair.
Speaking on the occasion, Foreign Minister Dr A K Abdul Momen said the new budget to be presented amidst Covid-19 pandemic will be an employment-friendly one.
"We have to create enough jobs. Our youths are very smart, they may not have enough education, but they are quick learners. They are great resources for Bangladesh."
Mr Momen noted that new avenues of export are now being created (for the country). Recently, a local company has shipped personal protective equipments (PPEs) abroad, and orders for these types of products are pouring in.
"We should not be that much frustrated, as the pandemic has been lashing the economy", he said.
"We need a good partnership between the government and the private sector to seize the opportunities, created following the virus outbreak," he added.
Agriculture Minister Dr Muhammad Abdur Razzaque said there is a need to resolve some existing problems to help the local entrepreneurs as well as to attract more foreign investments.
He also underscored the need for skill development of Bangladeshi nationals, as most of the top positions in local and multinational organisations are held by foreigners.
Industries Minister Nurul Majid Mahmud Humayun underscored the need for getting prepared to grab more FDI, as the big global companies are relocating their businesses following the coronavirus outbreak.
Commerce Minister Tipu Munshi said sometimes difficulties create some sort of opportunities.
"If we can act proactively and address the problems, I believe opportunities will also pour in."
He requested the private sector to work for attracting foreign investment, which is now being relocated from the countries like China and Japan.
The minister was hopeful that ongoing problems in the local garment sector will definitely go away in the coming days.
Prime Minister's Private Industry and Investment Affairs Adviser Salman Fazlur Rahman said the crisis has actually brought to the fore the importance of domestic industry in the economy.
"In this budget, I am sure we are going to see a lot of incentives, not only for export-oriented industries but also for domestic ones."
He underscored the need for reforms in foreign exchange control regime and tax regime.
On labour issues, he said suspending labour rights is not a solution. But, at the same time, organisations which advocate for labour rights should not adopt double standards.
"We have to compete in the world. In fact, the world has not rewarded us for labour rights. The countries, which have no labour rights for other reasons, are rewarded. I am sure the labour rights situation in Bangladesh is far better than Vietnam."
The adviser opined that strengthening the health sector in order to face the virus-led crisis is the most important need of the hour.
To this end, doctors, nurses and technicians are being appointed, and necessary funds are allocated, he noted.
Resident Coordinator of the United Nations in Dhaka Mia Seppo emphasised on addressing domestic violence, protecting labour rights, and creating jobs as the key options for recovery.
She said Bangladesh has a number of social protection programmes. However, none of these targets the unemployed people.
"So, this is something that obviously leads to the risk that people can return to poverty."
Country Director of the Asian Development Bank (ADB) Manmohan Prokash said there is unanimity that the Covid-19 pandemic will affect the economy.
"However, we should use this as an opportunity."
He suggested that there is a need for injecting more cash in the economy so that it can help the liquidity and domestic consumption situation.
It is needed to improve the access to cheap and affordable finance with limited collateral to promote entrepreneurship and jobs.
"There is also a necessity to launch a massive employment generation scheme for the returnee migrants and unemployed people."
"Besides, providing more support to health, agriculture, food security, and a social safety net is also required," he added.
Country Director of the World Bank (WB) Mercy Miyang Tembon said the WB's engagement in Bangladesh has been very critical in this Covid-19 period.
The organisation has already provided a number of supports, including US$100 million for a health emergency, and $500 million for the economic zones along with funds for several ongoing projects.
Besides, $250 million more will be given by the end of this month, she added.
An economist of the International Monetary Fund (IMF) Bangladesh Office Muhammad Imam Hussain said in Bangladesh, trade facilitation is a bit distorted, which inhibits export diversification. The issue needs to be thoroughly examined.
"Once the Covid-19 emergency is resolved, a combination of structural and financial policies could help mitigate future vulnerabilities, and ensure an adequate supply of credit to the economy," he noted.
Regional Manager of the Islamic Development Bank Group (IsDB) Muhammad Nassis bin Sulaiman said Bangladesh is one of the hardest-hit countries by the pandemic. So, the bank has identified three packages, consisting of emergency response, restoration and restart packages.
"One of the most effective interventions from our side is to look at the possibility to support the wash and hygiene projects. We are hopeful of coming out with the solution anytime soon as an emergency requirement of the country," he concluded.
In his welcome speech, the FBCCI president placed the budget proposals of the apex trade body.
He demanded lowering advance income tax (AIT), withdrawal of advance tax on raw materials for industrial use and for other products, and slashing corporate tax to 25 per cent from the existing 35 per cent for the next three years.
Talking about value-added tax (VAT), he said rebateable VAT needs to be revised at 10 per cent from 15 per cent, while other non-rebateable multiple rates needs to be revised also.
VAT on turnover up to Tk 30 million should be revised to 2.0 per cent from 4.0 per cent, while it should be exempted for the economic zones (EZs).
Referring to the Tk 200-billion stimulus packages for SME sector, the FBCCI president noted that SMEs may not generate much revenue directly. But, they create jobs, assist in consumer spending, and contribute to money circulations.
"As the backbone of the economy, they should get priority in getting loans at lowest possible interest rates from the financial institutions," he opined.
Dr Salehuddin Ahmed, former governor of the Bangladesh Bank (BB), said the country has already been burdened with many problems, and the coronavirus pandemic has added some more to these.
The initiatives that have been taken so far to rescue the economy are mostly short-term.
"The country also needs mid-term strategies in line with the Seventh Five Year Plan and long-term strategies to fully recover from the pandemic-related losses."
"We can't depend on banks for long-term investment. A functioning bond and stock market is needed, while the specialised banks can also play a role in this regard," Mr Ahmed said.
For economic stability, the government needs to diversify its export basket to divert too much dependency on RMG sector for export earning, he added.
Stressing the need for more local investment to create jobs, the FBCCI Vice-president Siddiqur Rahman said around 1.4 million expatriate workers have returned to the country due to the pandemic.
These skilled or semi-skilled workers should be employed here for the country's own good, he added.
Abdul Matlub Ahmad, former president of the FBCCI, said the coronavirus pandemic has shown how important the domestic industry is for the country's economic sustainability.
"This is the high time to facilitate domestic industry. Provide facilities like economic zones to the whole country for at least a year, and see what we can do," he mentioned.
Another former president of the apex trade-body, A K Azad, called for proactive role of the Bangladesh Investment Development Authority (BIDA) and the Bangladesh Economic Zones Authority (BEZA) to bring more FDI from countries like the US and Japan, as they are planning to shift some of their businesses from China.
The BEZA Executive Chairman Paban Chowdhury said his organisation has already submitted a proposal to the Prime Minister's Office on bringing FDI from different countries in the middle of the pandemic.
He also said the country needs to do better in the rankings of Global Competitiveness and Ease of Doing Business indexes to attract more FDI, apart from dealing with issues like corporate tax, skilled workforce, quality infrastructure and utilities, good governance, and policy consistency.
BIDA executive chairman Sirazul Islam, FBCCI former president Shafiul Islam Mohiuddin, FBCCI advisor Sonia Bashir Kabir, Centre for Policy Dialogue (CPD) executive director Dr Fahmida Khatun, and Policy Exchange chairman Dr Masrur Reaz also spoke, among others, on the occasion.
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