“Impact of covid-19 on business and economy of Bangladesh”

Submitted To Submitted By
Umma Hania Name : Kamran Ashraf
Lecturer Roll : 2021141082
Introduction to Business Section : B
Bangladesh University of Batch : 05
Professionals Accounting and Information Systems

“Impact of Covid-19 on Business and Economy of Bangladesh”

After coronavirus has prevailed, the policy makers all over the world are engaged
to control the damage of economic losses at the moment and also preparing for
controlling the upcoming crisis. The pandemic has spread ,as far as it can, to 208
countries and regions of the world and it is significantly affecting the global
economy. The countries have failed to stop the spreading of coronavirus and
many people are dying at an alarming rate in the affected areas due to
coronavirus. Again, some evidence and indications are showing that financial
and banking industries are facing remarkable instability from the last 3 months.

The economic consequences of the Covid-19 outbreak are tough to handle as

the entire global supply chain has been interrupted due to worldwide
transportation shutdown.

The banking industry is the key sector of economic activities for any country. As
Bangladesh is a developing country, the government needs to be more watchful
in terms of planning to get rid of the impact of COVID-19 outbreak. We are
already suffering heavily due to NPLs and unfortunately the outbreak may
increase the level of NPLs in the coming days. The NPLs can be split up in two
phases: 1. Pre-COVID NPLs & post- COVID NPLs in view to stare & understand
the facts more judiciously. Therefore, a new set of BB guidelines need to be
initiated addressing the facts. It is pivotal to focus on the early bail-out plans for
probable collapse of large loans is essential for sustainability as many backward
linkages, SMEs and individuals are directly and indirectly correlated with these
Large Loan borrowers. Country's overall economic ecosystem is standing on it;
we need to make sure that this should not collapse. But it is also true that it is the
peak time for every bank and other non-banking financial organization to assess
and reassess their overall lending portfolios and withdraw some of their
unnecessary and unwanted portions wisely.
If we pivot our eyes to the modern part which is likewise experiencing the
dangerous infectious ailment. As we as a whole realize that, sending out
broadening is consistently a key for supportable development in gaining outside
cash yet unfortunately we are vigorously depending on the RMG segment. This
part attests, 85 percent of the country's fare income goes through the RMG
segment. We neglected to enhance our fare bushel, in this way making a
colossal hazard in our fare portfolios. The reaction against the flare-up and its
effect on the modern area is so far praiseworthy, yet this pandemic likewise
represents a financial and helpful emergency
Bangladesh is the second largest exporter of garments in the world after China.
The main markets are in Europe and America. As the coronavirus outbreak,
many buyers in Europe cancel the order and the owners of many garments have
not the ability to keep running garment factories. Many garment workers lost their
job and they are the worst sufferers.
National Public Radio (NPR) said that this garments sector employs more than 4
million workers and the average wage is $100. They live paycheck to paycheck.
Most of the workers are women. There are 4 female workers against 1 male
worker.
In a web-based report of BBC news, Sabina Akter, who is a garment worker,
stated,"I don't know how I'll be able to survive. I lost my job, and I don't know how
I'll be able to buy food,"
Another worker, Anisa Begum, said that she and her husband could survive on
one meal a day, but not with children. "If the government doesn't come forward
with help, we have no way to survive.''
Most of the time, these female workers are only one earning source of their
family. Sometimes they run a family of five to six members. Most of them have
come from villages to lead a better life though the wage is low. For these female
workers prolonged recession is more deadly than coronavirus.They will die of
hunger instead of the coronavirus.

The PM was all in all correct to recognize this as a test and declared a crisis
boost bundle of $8.5 billion (proportionate to 2.5 percent of GDP) for connect
financing of the working capital of little and circulate food help through
Bangladesh's current social security programs as just 15 percent of the
Bangladeshi populace gains over $6 every day, and more than 90 percent of the
workforce has a place with the casual division. As the Bangladesh Government
needs more financial space to make huge improvement bundles because of low
assessment-to-GDP proportion, the main conceivable alternative is fiscal
extension, which most created economies have just sent.
As per the conjecture discharged by the Economist Intelligence Unit on 26
March, the worldwide economy is relied upon to shrink by 2.2 percent in 2020.
These impacts are relied upon to be progressively uncovered in major G20
economies, for example, Germany, Italy, the United Kingdom and the US - all
nations that are significant markets for Bangladesh's most indispensable tradable
great: readymade pieces of clothing. The discouraged oil costs will likewise
prompt a solid inversion of development in the Middle East and North Africa
locale, which is additionally home to a huge Bangladeshi diaspora, who send
back near $20 billion consistently. In the coming months, there can be no
uncertainty that there will be a decline in settlements and that these second-
degree effects will likewise be felt in the nation, agonizingly in country
Bangladesh, where families depend intensely on settlements for their endurance.

However the top management and policymakers should play their role wisely in
this critical situation so that Bank ok and others NBFIs must take due preparation
in the post covid-19 situation to recover the economy. Government should form
a group who will assess data and make reliable situation analysis. Again the
government needs to proclaim clearly so that all workforces can ensure their
preparation is effective as well as efficient at this stage for damage control.
Because preparedness for the crisis would be a way of bringing stability.