Economic Reporter :
Dhaka Chamber of Commerce and Industry (DCCI) on Friday urged the authorities concerned to create emergency fund for the micro, small and medium enterprises (MSMEs) to ensure their survival as the whole world is reeling from the coronavirus pandemic.
“Businesses, investment and economic activities are adversely affected due to widespread outbreak of coronavirus globally,” according to a DCCI press release.
The trade body observed that Bangladesh’s economy encompassing export oriented industries and local market orientated manufacturing, agro processing and service industries, micro, small and medium enterprises including trading businesses, transport, hotel, restaurant, grocery and informal sector comprising floating high small traders, shops have already encountered a severe blow appearing from this outbreak.
DCCI profoundly appreciated timely leadership of Prime Minister Sheikh Hasina for her pro-economic decisions during this precarious situation and creating a fund of Taka 5000 crore for export oriented industries to support the salary and wages of their workforce.
“Bangladesh, under the leadership of Prime Minister Sheikh Hasina, has undertaken timely and laudable measures to restrain the nerve-wracking consequences of this pandemic on businesses as well as public health.
The measure will surely leverage export oriented industries as deferral, cancellation and drying-up of export orders put revenue stream of these industries at risk,” the trade body added.
DCCI requested the government to create a three-year long emergency fund with one percent interest to support the financially stressed local MSMEs and informal sector for paying salary to their workers.
The DCCI appreciated the measures of Bangladesh Bank for taking precautionary measures, including reducing Cash Reserve Ratio (CRR) and policy rate to ensure liquidity in banks as well as the business friendly moves of the central bank, like Export Development Fund (EDF) repayment time, loan repayment time extension initiated earlier.
“Due to the COVID-19 outbreak, the delivery of containers from the sea ports and land ports has slowed. Importers have to pay port demurrage for delaying clearance goods. Considering current standstill state and limited port operations, port demurrage and bank charges for MSMEs engaged in export oriented manufacturing activities, import businesses can be waived,” observed DCCI.
As the novel coronavirus creates a negative impact on the country’s local export business with EU, the USA and the global trading system, therefore, the DCCI urged the government to negotiate relevant counterparts to restore the GSP facility in US market and gain GSP plus facility to EU market in near future.
DCCI felt that consideration of these opportune recommendations will enable MSMEs to sustain in this difficult time and overcome the crisis. Besides, it will revive steering the economic growth in the near future.
