Taskforce for quick steps to address impact of recession
Wednesday, 25 March 2009
FE Report
The first meeting of the official taskforce Tuesday reached a consensus on taking quick and prudent steps to cope with the possible impact of the global meltdown on the country's economy.
The 27-member high-powered body also called for focussing on some specific areas including early disbursement of official incentive, exemption of existing license fee on captive generators and upgradation of certification quality of Bangladesh Standards and Testing Institution (BSTI).
Other areas are: giving special attention to the country's frozen-food export sector, relaxation of the existing CIB (Credit Information Bureau) rules and regulations and withdrawal of value added tax (VAT) from exports.
"We have agreed on the need for taking quick steps to help cope with the ongoing global financial recession…And to do so, we have also given importance to some of the issues," the Taskforce head and Finance Minister AMA Muhith told the post-meeting press briefing at the secretariat.
He also laid emphasis on creating more job opportunities and boosting investment to help keep the country's economy active against the backdrop of the global meltdown, which could, according to him, take a serious turn next year.
"It is the first meeting and it has no specific agenda. The meeting has received many recommendations but we have not taken any decision," the Finance Minister said.
Nobel Peace Prize Laureate Dr Muhammad Yunus, who was present at the meeting on special invitation, also underlined the need for taking necessary steps to face the global meltdown.
"The ongoing financial meltdown is a crisis and it has to be faced courageously," Dr Yunus said and added, "A big effort will be required for tackling the big crisis."
There is a need to tackle the crisis both locally and internationally, the economist observed. It is important to consider as to how the meltdown-hit countries could help Bangladesh face the situation.
"They have taken bailout programmes for themselves, but what steps have they taken to help other victim countries like ours?" Dr Yunus questioned.
He also called for taking an integrated effort, especially in the country's agriculture, food, power and energy and environment sectors, to help cope with the possible external shock.
Responding to a question, the Finance Minister said most of the country's export sectors including readymade garment (RMG), jute, ceramic, leather, frozen foods are more or less affected by the global meltdown.
When his attention was drawn to the demand of a Tk 60-billion bailout package by the country's businesses, Mr Muhith said that it would not be possible for the government to dole out such large sum.
"But, possibly we will enhance the amount of official incentive for the exporters, which now amounts to around Tk 10.50 billion," he said.
He also mentioned that if the country's RMG sector faced any setback due to the recession it would deal a major blow to the economy.
He also mentioned that since the government's resources are limited, the exporters would also have to shoulder some of their financial loss.
Responding to another query, the Finance Minister said the government has already taken some steps including widening its food safety-net programmes against the backdrop of the global recession.
When asked, he said the country's growth of remittance still remains stable. Besides, necessary measures have been taken to give a further boost to the remittance growth, he added.
The government formed the taskforce on Wednesday last to devise necessary measures for the government to face the possible adversity of the global meltdown.
The first meeting of the official taskforce Tuesday reached a consensus on taking quick and prudent steps to cope with the possible impact of the global meltdown on the country's economy.
The 27-member high-powered body also called for focussing on some specific areas including early disbursement of official incentive, exemption of existing license fee on captive generators and upgradation of certification quality of Bangladesh Standards and Testing Institution (BSTI).
Other areas are: giving special attention to the country's frozen-food export sector, relaxation of the existing CIB (Credit Information Bureau) rules and regulations and withdrawal of value added tax (VAT) from exports.
"We have agreed on the need for taking quick steps to help cope with the ongoing global financial recession…And to do so, we have also given importance to some of the issues," the Taskforce head and Finance Minister AMA Muhith told the post-meeting press briefing at the secretariat.
He also laid emphasis on creating more job opportunities and boosting investment to help keep the country's economy active against the backdrop of the global meltdown, which could, according to him, take a serious turn next year.
"It is the first meeting and it has no specific agenda. The meeting has received many recommendations but we have not taken any decision," the Finance Minister said.
Nobel Peace Prize Laureate Dr Muhammad Yunus, who was present at the meeting on special invitation, also underlined the need for taking necessary steps to face the global meltdown.
"The ongoing financial meltdown is a crisis and it has to be faced courageously," Dr Yunus said and added, "A big effort will be required for tackling the big crisis."
There is a need to tackle the crisis both locally and internationally, the economist observed. It is important to consider as to how the meltdown-hit countries could help Bangladesh face the situation.
"They have taken bailout programmes for themselves, but what steps have they taken to help other victim countries like ours?" Dr Yunus questioned.
He also called for taking an integrated effort, especially in the country's agriculture, food, power and energy and environment sectors, to help cope with the possible external shock.
Responding to a question, the Finance Minister said most of the country's export sectors including readymade garment (RMG), jute, ceramic, leather, frozen foods are more or less affected by the global meltdown.
When his attention was drawn to the demand of a Tk 60-billion bailout package by the country's businesses, Mr Muhith said that it would not be possible for the government to dole out such large sum.
"But, possibly we will enhance the amount of official incentive for the exporters, which now amounts to around Tk 10.50 billion," he said.
He also mentioned that if the country's RMG sector faced any setback due to the recession it would deal a major blow to the economy.
He also mentioned that since the government's resources are limited, the exporters would also have to shoulder some of their financial loss.
Responding to another query, the Finance Minister said the government has already taken some steps including widening its food safety-net programmes against the backdrop of the global recession.
When asked, he said the country's growth of remittance still remains stable. Besides, necessary measures have been taken to give a further boost to the remittance growth, he added.
The government formed the taskforce on Wednesday last to devise necessary measures for the government to face the possible adversity of the global meltdown.