The Asian Development Bank (ADB)’s Country Director in Bangladesh Manmohan Parkash on Sunday suggested to inject more cash into the economy, so that it helps with liquidity and domestic consumption; and improve the access to finance, cheap, affordable, with limited collateral to promote entrepreneurship, and jobs.
Manmohan Parkash made the suggestions at FBCCI Webinar on Bangladesh’s Covid19 stimuluses, economic sustainability, recovery, domestic investment, foreign direct investments (FDI) and overseas FDI.
His other suggestions include launching a massive employment generation scheme for returnee migrants and unemployed, focus on skills development and education; providing more support for health and agriculture sectors and food security as a share of GDP; mainstream social safety net, include vulnerable sections of the society in this net, use technology and national ID system to make it transparent, prompt and world class; and last but not the least is to use this opportunity for carrying out the much-needed reforms for attracting investments, easing the cost of doing business, catalyzing financial sector, promoting entrepreneurship, revenue mobilization, capital market development, and private sector development, among others.
The ADB’s country director also said there is unanimity that the Covid-19 pandemic will affect the economy, however we should use this as an opportunity. Extraordinary times call for an extraordinary response.
“We stand ready to help in providing this extraordinary response. We have already provided $100 million for meeting the urgent health sector needs, and a fast -disbursing $500 million initial assistance for social protection and credit support to micro, small and medium enterprises. We have enhanced the trade finance program which should provide over $1 billion extra liquidity year on year for availability of credit for private sector in Bangladesh,” he also said.
To conclude, addressing cash management challenges and broader resiliency issues due to Covid-19 related shutdowns and economic knock-ons will help minimize impact on Bangladesh economy. The interventions and response plan need to be designed from this perspective. Quick actions will help restore confidence and ensure quick recovery.
“Knowing Bangladesh and its people, I am sure the country will recover quickly from this crisis. We stand ready to help Bangladesh,” Manmohan Parkash added.