ICT sector trade bodies seek Tk 19.3b grant, soft loans

Five trade bodies in the information and communication technology (ICT) sector have sought Tk 19.3 billion as grant to overcome the losses emanated from the Covid-19 pandemic.
Having around 6,000 to 7,000 members, they also demanded collateral-free loans at 2.0 per cent interest with one year grace period.
The trade bodies are: Bangladesh Association of Software and Information Services (BASIS), E-commerce Association, Bangladesh (eCAB), Bangladesh Computer Samity (BCS), Internet Service Providers Association of Bangladesh (ISPAB), and Bangladesh Association for Call Centre and Outsourcing (BACCO).
They submitted a letter to the Ministry of Posts, Telecommunications and Information Technology for the financial support, BASIS President Syed Almas Kabir told The FE.
"We sought the government's assistance to cover part of salaries of the employees and house rent for the next six months from April," he said.
Of the Tk 19.3 billion, BASIS sought Tk 6.6 billion, ISPAB Tk 6.1 billion and the rest Tk 6.6 billion for the three other organisations.
In a separate proposal, BASIS, the national association of software and ICT firms, also sought Tk 5.0 billion as soft loan for the association members.
Mr. Kabir said the trade bodies also sought loan from the Entrepreneurship Support Fund (ESF) which was formed for agro-based food-processing and ICT sector only.
"We want loans from the fund now through a speedy and hassle-free process," he said.
The ICT-based projects are entitled to get a minimum of Tk 5.0 million and a maximum of Tk 50 million in loan from the fund for a period of eight years at 2.0 per cent simple interest.
Mr Kabir said several ongoing projects have already been stopped due to the uncertainties over the coronavirus outbreak. The domestic ICT sector will be hit hard by the rapid spread of the virus across different countries and territories.
"We do not want job cuts in the sector. So, the financial assistance from the government would keep us afloat," he said.
He said the government wants to introduce more online-based services in areas like health, entertainment and emergency response during the epidemic. "BASIS is ready to provide assistance in those areas," he added.
He thought that there would be a new development in automation in every sector once the pandemic is over. "We want our members to get ready for the post-epidemic period," said Mr. Kabir.
The ISPAB also submitted a separate proposal to the government, seeking some facilities including making their services tax free for next two years.
ISPAB president Aminul Hakim said they sought risk allowance for their employees as their services announced as emergency during the countrywide shutdown.

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