‘Big share of stimulus packages untapped due to reluctance of banks’

Planning Minister MA Mannan has said that despite the government sending money to the banks for stimulus packages announced to curb the effects of the pandemic, a large share is not being disbursed to the people due to the reluctance of banks.

He also instructed the finance secretary and the Bangladesh Bank governor to expedite disbursal of funds from the stimulus packages.

Mannan made the remarks at a series of exchange of views on "Employment and Revitalisation of the Economy" held at the Osmani Memorial Auditorium on Thursday. The planning minister was the chief guest at the meeting, while Bangladesh Bank Governor Fazle Kabir was the special guest.

“We have allocated the stimulus package funds for the affected people. If any bank does not obey the word or law, then necessary action has to be taken,” the minister said.

Mannan also pointed out that reducing incentives or subsidies in favour of more policy support and reforms could yield higher returns.

"We are giving incentives to expatriates, as a result of which a large portion of their money is coming to Bangladesh,” the planning minister said. “But banks are not providing loans from the stimulus packages.

“Our information is that some people are not following the law. If a bank does not listen to you, you can take action if necessary,” he said to the finance secretary and the central bank governor.

"The key message of our prime minister's strategy is to support coronavirus-affected people,” he added.

Noting that the stimulus funds are not going to small and medium enterprises (SMEs), he said this was because most entrepreneurs do not have any contact with the banks.

“They do not even go to the bank. We have to take initiative to bring them under the banking channel. Otherwise the incentives will not work,” Mannan said.

He said the last few years have been a success for our economy.

“Many feared that our condition in Covid-19 would worsen," he said. “But we fought well. As a result, we got up very quickly.”

The planning minister said, "At first, we took a strategy so that the livelihoods of people did not go down further. This was the tactical message of the prime minister. Time has proven that this strategy worked.

“It is precisely in proportion to our population that our strategy has been fairly more complete in all aspects of our socio-economic dimensions. We have taken all kinds of preparations. We have prepared our oxygen equipment, doctors, number of people involved in the service sector without any major deviation in training and strategy,” Mannan explained.

The keynote paper was presented at the meeting by Abdur Rauf Talukder, senior secretary of the Finance Division.

Among the panellists were SME Foundation Chairman Masudur Rahman, Centre for Policy Dialogue Distinguished Fellow Professor Mustafizur Rahman, Asian Development Bank Country Director Manmohan Parkash, Federation of Bangladesh Chambers of Commerce and Industries President Sheikh Fazle Fahim, and Member of the Planning Commission Dr Shamsul Alam.