ZCZC
BSS-08
PM-COVID-STRATEGY LEAD 2 DHAKA
Sheikh Hasina elaborated the four programmes taken to cope with the
possible economic impact on the country due to the coronavirus outbreak.
A) Increasing public expenditure: Generating employment will be basically
given priority in public expenditure while foreign tours and lavish
expenditure will be discouraged. Since the debt to GDP ratio of Bangladesh is
much less (34%), so the higher public expenditure would not create any
pressure on the macroeconomy of the country.
B) Formulating a stimulus package: Some low interest credit facilities
will be launched through the banking system mainly to rejuvenate the economic
activities, keeping the job of the workers and employees as well as the
competitive edge of the entrepreneurs intact.
C) Widening the coverage of the social safety net: The coverage of our
existing social safety net would be further widened to fulfill the basic
needs of people living below the poverty line, day labourers and people who
are engaged in non-formal works.
Under the third operation, she said, the notable programmes are
distributing food materials free of cost, selling rice at Taka 10 per KG,
distributing cash among targeted communities, widening the coverage of the
old-age allowance, widow allowance and allowance for the women oppressed by
husbands to cent percent at 100 most poverty-prone upazilas of the country.
Other undertaken operations include speedy implementation of the programme
to build houses for the homeless marking the birth centenary celebration of
Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
D) Increasing Monetary Supply: It is very much necessary to increase the
monetary supply to overcome the adverse impact on the economy.
Sheikh Hasina mentioned that the Bangladesh Bank has already reduced the
CRR and REPO rate to boost the monetary supply which will continue in the
future as per the necessity. “But, in this regard, our goal is that there
will be no increase in inflation due to monetary supply,” she said.
The prime minister said the fast spread of the coronavirus, huge pressure
on the health services, unprecedented lockdown and stagnant communication to
curb the pandemic have already started putting negative impact on the global
economy.
“The sectors and areas which are being affected are: industries
production, export trade, services sectors, especially tourism, aviation, and
hospitality sector, small and medium enterprises and employments and these
are experiencing a landslide fall,” she said.
Not only the supply side, she mentioned, the consumption and investment in
demand are also witnessing downward.
Sheikh Hasina said the IMF has already declared that the global economic
recession has started while the stock markets across the globe have witnessed
a fall of 28-34 percent over the last few weeks.
Citing an estimation of the Organisation for Economic Co-operation and
Development (OECD), she said the global growth could come down at 1.5 percent
if the recession persists long while a huge workforce across the globe is
feared to lose their work.
Sheikh Hasina said if the recession persists long, it is also apprehended
that the world is likely to face a great economic recession for the first
time after the World War II.
She said time has not yet come to specifically mention what type of
negative impact or what would be the impact of the novel coronavirus pandemic
on the country’s economy.
The prime minister also listed some of the impacts of the COVID-19 on the
country’s economy which are as follows:
A) The import cost and export earnings in this fiscal year have witnessed
a 5 percent fall compared to the same period of the last fiscal year, and
this fall could further stretch at the end of the current fiscal year.
B) There is a possibility of not getting private investment at a desired
level due to the delay in implementation of the ongoing mega projects,
establishment of the economic zones and also delay in implementation of the
decision to reduce the bank interest rates.
C) The novel coronavirus will have a negative impact on the services
sector, especially hotel-restaurants, transport and the aviation sectors.
D) Like other countries of the world, it will also have an adverse impact
on the country’s capital market.
E) Due to the decline in global demand, the world fuel oil price has been
reduced by over 50 percent for which the inward remittance flow is also being
affected.
F) The Asian Development Bank (ADB) in their estimation said the economic
loss of Bangladesh could extend up to $3.2 billion due to the impact of this
deadly virus, but under the present circumstances, it is assumed that the
extent of loss could be much more.
G) The purchasing capacity of the low-income people could be reduced as
well as there could be disruption in the supply chain due to the long general
holidays affecting the production of the SMEs and hindrance in the transport
services.
H) The overall revenue collection in the current fiscal year (FY20) is
less compared to the budgetary target, and this could further increase the
budget deficit at the end of the current fiscal year.
I) The driving forces for attaining over 7 percent growth on an average
for three years and lastly 8.15 percent growth in FY19 were the strong
domestic demand and supporting revenue and monetary policy. As a result, the
GDP growth could be declined due to the negative trend of the macroeconomic
indicators.
The prime minister said the World Health Organisation (WHO) has declared
the novel coronavirus as a pandemic as the deadly disease has spread across
the globe.
“So far, 202 countries and territories have been affected by the disease,
and over 70,000 people are being infected by it and more than 4,000 people
die every day,” she said.
Sheikh Hasina said but by the grace of Allah and due to timely and proper
steps of the government, coronavirus infections did not take place
extensively yet in Bangladesh and the situation is under control here.
“When the coronavirus outbreak began in China in December last year, we
gave top priority to this issue,” she said.
The premier said the Diseases Control Unit of the Directorate General of
Health Services (DGHS) and the Institute of Epidemiology Disease Control and
Research (IEDCR) have jointly started work to this end.
“A control room was opened at the IEDCR and we started preparation to
tackle this disease,” Sheikh Hasina added.
Besides, she said, separate control rooms were introduced at the Prime
Minister’s Office (PMO) and the Health Ministry. “The overall situation of
coronavirus is being monitored, and programmes are being carried out through
these control rooms,” she said.
The prime minister said to contain the coronavirus and other contagious
diseases, the government has adopted the National Preparedness and Response
Plan for COVID-19, applying its experiences and following the guidelines of
the World Health Organization (WHO).
Mentioning that three-tier programmes have been taken under the plan,
Sheikh Hasina said the government is discouraging people to return home from
abroad and go abroad to prevent the spread of the lethal disease.
The authorities concerned are also immediately identifying the home
returnees infected with the virus to halt the person-to-person virus
transmission, she said, adding the government is providing proper treatment
to the people infected with coronavirus and patients.
Since January in 2020, Sheikh Hasina said, the three-tier programmes are
being implemented. “All the returnees from abroad are being screened through
thermal scanners and infrared thermometres at all airports, seaports and land
ports,” she added.
The premier said steps have been taken to keep the people having COVID-19
symptoms and suspects in quarantines. “Measures have also been taken to
distribute the health declaration and passenger-locating forms among the air
passengers before landing their flights,” she said.
The premier said the passengers, who have no COVID-19 symptoms and are also
not suspected, are advised to stay at home quarantines and “we ensure regular
follow-up with them”.
She said a national committee, led by the health minister, has been formed
involving representatives from different ministries, international agencies
including WHO and professional bodies affiliated with healthcare.
“Committees have also been constituted at divisional, district, upazila
and union levels,” she added.
Sheikh Hasina said till yesterday, a total of 70 people were infected with
coronavirus in Bangladesh while eight people died. “I pray for eternal peace
of the departed souls,” she said.
“Some 30 people returned home after recovery. And, those who died were in
the 70s and they were suffering from various complicated diseases, although
we don’t expect any death,” Sheikh Hasina said.
To contain the infections of coronavirus globally, the premier said,
lockdowns have been announced in different countries. “Apart from sealing off
borders in more than 100 countries, flight landing has been suspended in
almost all countries of the world,” she added.
The prime minister said general holiday has been announced for 17 days in
Bangladesh since March 26 last, while partial holiday has been declared in
industries and factories.
“Tourist centres and shopping malls remain closed, and public transport
services on roads, waterways and rail routes have been suspended and the
people have been instructed to stay at their homes and maintain social
distancing while going out of homes,” Sheikh Hasina said.
The prime minister urged the people to follow health codes properly and
celebrate the Pohela Boishakh, the first day of Bangla New Year, by staying at
homes.
“The cultural functions on the occasion will be staged through media,” she
said.
Mentioning that holy Shab-e-Barat is ahead, Sheikh Hasina called upon the
countrymen to pray to Allah by staying at homes so that they (people) stay
well and can advance further socioeconomically and the entire world is freed
from the Covid-19 pandemic.
MORE/MRI/GM/SH/GMR/1430 hrs