The government will soon announce a stimulus package to help the poor and selected sections of the agriculture and livestock sectors, to help them minimize the economic effects of the coronavirus crisis.
The poor, who are heavily reliant on daily wages for the purchase of essentials, are among the worst affected by the economic impact of the ongoing pandemic.
Sources at the Prime Minister's Office said they already had lists of freedom fighters and poor people who receive monthly allowances from the government, and provision of these allowances would continue.
“We have also asked all district administrations to come up with lists of day labourers and poor people who will receive further assistance from the government,” said an official of the PMO, asking not to be named.
The financial assistance, which will be distributed via mobile banking services, is set to continue for three months.
However, multiple sources at the PMO said the government might not allocate new funds for the schemes, but instead draw from the stimulus packages announced by Prime Minister Sheikh Hasina last week.
The Prime Minister on April 5 announced a total incentive package of Tk72,750 crore, nearly 2.52% of GDP, to overcome the economic impact of the SARS-CoV-2 coronavirus outbreak.
“I believe the new packages to be offered are already included in [the previously announced] amount. The prime minister may specify and declare the schemes for poor people and the agriculture and livestock sectors,” said an official of the PMO.
When contacted, a minister also told Dhaka Tribune that the new packages would draw on funds from the incentive package earlier announced by the prime minister.
Both the minister and PMO officials said the prime minister might add more funds to the stimulus package, if she so desired.
The government on April 5 announced that small and medium enterprises (SMEs), including cottage industries, would receive Tk20,000 crore as low-interest working capital from banks.
Government officials said the Finance Ministry was collecting information from the ministries concerned to finalize the plans.
“Farmers, agro industries, the poultry industry and livestock industry are going to get TK5000-7000 crore in loans with a very low interest rate, may be at 3%,” a top government official told Dhaka Tribune, asking not to be named.
When contacted, Agriculture Minister Dr Abdur Razzaque yesterday said the incentive package for the agriculture sector would be announced by Prime Minister Sheikh Hasina soon.
The prime minister on April 7 urged the authorities concerned to make a list of lower middle class and poor people who had been left out of the government’s social safety programs and to provide them with ration cards to ease their sufferings in the coronavirus situation.
“I have already instructed the Ministry of Food and the Ministry of Disaster Management and Relief to make a list of those who remain outside social safety programs, such as rickshawpullers and small shop owners, but depend on daily wages,” Sheikh Hasina said.
“The list has to be made for those who are really suffering right now. I want to say this strongly. These people cannot get out of their homes and they cannot beg for food. Make sure they and their children do not suffer,” said the prime minister while addressing a videoconference with public representatives and officials of 15 districts of Chittagong and Sylhet divisions.
A minister, asking to remain anonymous, yesterday said the prime minister would announce the packages for the poor by Sunday or the day after.
Fisheries and Livestock Minister SM Rezaul Karim told Dhaka Tribune the ministry had already sent a letter to the finance secretary explaining the losses faced by poultry, fisheries and livestock industries because of the Covid-19 crisis.
A total of 482 cases of Covid-19 have so far been confirmed in Bangladesh, including 30 deaths.
Relief packages by neighboring countries
India on March 26 unveiled a $23bn package to help the country’s poor, who have been hit by a 21-day lockdown now underway to contain Covid-19.
As per the Indian government's plan, the $22.6bn economic stimulus package would provide direct cash transfers and ensure food security for millions of poor people suffering because of the nationwide lockdown.
Pakistan on March 24 announced an economic relief and stimulus package of approximately Rs1.2 trillion to support the poor and help local industries offset the negative impact of the coronavirus outbreak in the country.
Out of the amount, Rs200 billion was allocated for day labourers.
Another Rs150 billion was reserved for poor families, with every family getting about Rs3000 on monthly basis.
