Bangladesh plans to give economy another dose of coronavirus stimulus in winter

Sheikh Hasina has asked the finance ministry to roll out a plan on another shot of stimulus package to further cushion economy from the pandemic shock amid soaring cases in winter as the world fights its way back from the financial crisis.

The prime minister ordered the fiscal stimulus package at a meeting on finalising the 8th Five-Year Plan for the years 2021 to 2025 on Wednesday as Bangladesh is preparing to tackle a possible second wave of infections, said Hasan Jahid Tusher, her deputy press secretary.  

Hasina had announced the first packages in March when the pandemic ravaged the global economy. Later, the incentives were raised past Tk 1 trillion, or 4.34 percent of the country’s total GDP. 

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Readymade garment factories, the main exporting sector of Bangladesh, paid their workers and cut lay-offs by taking loans from the packages. Funds were also given to other sectors.

Economists hailed the packages that softened the blow of the pandemic to economy. But exports stumbled again as Europe and the US have re-imposed tough curbs even during the Christmas holiday season after being hit by the second wave.   

The apparel industry entrepreneurs and industrialists of other sectors have sought more government help.

In the meeting on the five-year plan, Shamsul Islam, member of the Planning Commission, submitted the finalised draft emphasising inclusive progress.   

Hasina asked the commission to highlight the strategy and action plan separately in the five-yearly plan, Tusher said.

The Executive Committee of the National Economic Council is set to approve the plan in its next meeting.