COVID-19 pandemic: Businesses experiencing uneven recovery, say experts

Businesses in Bangladesh are experiencing varying degrees of recovery from the coronavirus pandemic.

According to experts, this is consequent to larger entities being able to access the stimulus packages, thereby bouncing back strongly while smaller ones are struggling still.

According to reports, the Government, since March 2020, unveiled 21 stimulus packages involving more than Taka 120,000 crore (which is about 4.5 per cent of the GDP of Bangladesh and one of the largest in the world) with the large industrial and service sectors making around 80-90 per cent recovery compared to the pre-pandemic level and only 30-40 per cent for small and medium enterprises as businesses belonging to the large industrial and service sectors have, reportedly, managed loans smoothly even as small enterprises have been largely deprived of the same and consequently struggling still.

Speaking to the media, the Executive Director of the Policy Research Institute of Bangladesh, Ahsan H. Mansur, reportedly, underlined that even though data on the recovery was not available, it’s predicted that the economy has recovered 70-80 per cent and went on to add that Bangladesh now faces a K-shaped recovery, which will not bring good for the economy.

The recovery is not equal given the business performance of all sectors, maintained Ahsan H. Mansur, adding the central bank (Bangladesh Bank) should extend the credit guarantee scheme to the SME sector such that small businesses can manage loans without collaterals.

“Considering the volume of their business, the size of the ongoing stimulus package for the CMSME sector should expand,” said the Executive Director of the Policy Research Institute of Bangladesh, who is also the chairman of Brac Bank.