CFA Society Bangladesh, the local member society of CFA Instituteorganized a live streaming event on ""Inclusive Finance & Macroeconomic Transformation of Bangladesh" using the digital platform of the official Facebook page of CFA Society Bangladesh and a leading English daily of the country.
The session speaker Dr. Atiur Rahman, Bangabandhu Chair Professor, University of Dhaka & former Governor, Bangladesh Bank, presented the macro-economic transformation story of Bangladesh and the role of the central bank in guiding the transformation. He specified the transformation was exemplary in some areas--such asrising of per capita income, lowering poverty level, controlling fertility rateand child/maternal mortality rate, self-reliance on food production. While discussing the key drivers behind the spectacular transformation, he identified enhanced digital connectivity, financial inclusion and the extended Social Safety Net Programs (SSNP) as the key drivers. He also spoke about how COVID-19 disrupted the global supply chainand affectthe life and livelihood of countries across the globe. He pointed outthat despite worldwide lockdown, Bangladesh experienced a stronger V-shaped recovery due to the pragmatic and timely initiatives of the government and Bangladesh Bank. He reiterated that prudential policies coupled with good agricultural output, robust remittance performance, export growth in recent monthshelped the country to combat the impact of the pandemics. He was optimistic that the growth rate for FY21 will be higher than the ADBs projected growth rate (6.8%) because of growing labour productivity & enhanced economic resilience. He emphasized the development for real economy, Cottage, Micro, Small and Medium Enterprise (CMSME) sector, women entrepreneurship development, digital finance to strengthen the financial pillar of the country.
He praised the government's quick responses in managing the impacts of COVID-19 by taking multifarious initiatives, including declaration of different stimulus packages. He mentioned, the government has initiated 21 stimulus packages worth USD 13.25 billion [4% of GDP]. He applauded the Bangladesh Bank's recent initiatives such as change in CRR, REPO, ADR to boost liquidity in money market. He said money market liquidity and low-interest-rate environment should be maintained until the economy fully recovers from the effects of pandemic.
Finally the session was followed by a Q&A session, containing detailed discussion on the implementation challenges of stimulus package for CMSME segment, attaining price efficiency in agricultural sector, management of asset quality for Banks inthe post-pandemic period, incentives for good borrowers, credit guarantee scheme in development of SME sector, ways for ease of doing business etc. He also emphasized for formation of a Tk 1000 crore Startup Capital, support for entrepreneurship, subsidy for Cottage,Micro& Small Enterprises in the form of refinancing at a lower rate (zero to one percent). He stressed to take an initiative to make a convenient payment gateway for the freelancers and emphasized for facilitating Digital & Green transformation to put the country in a higher growth trajectory.
Mr. Md. Shah Naoaj, Secretary, CFA Society Bangladesh, moderated the session.
