The overall economy of the country has started to rebound, bringing smiles to the faces of businessmen.
The government has taken several initiatives and opened all activities gradually following a long shutdown, helping recovery of economic losses caused by the corona pandemic, experts said.
Financial activities have begun reactivating gradually with the support of the Prime Minister’s incentive package of Tk 1,03,000 crore to tide over the possible economic fallouts, they added.
On the one hand, record forex reserves and record remittance inflows in the last fiscal, and positive export earnings in the last several months are creating new possibilities in trade and commerce, they added.
Entrepreneurs have started commercial activities despite fears of being infected with the deadly virus.
Sales in the shops across the country have increased ahead of Eid-ul-Adha, having a positive impact on the business community.
The country's remittance inflow witnessed a record high reaching $18.20 billion in last fiscal 2019-20 despite a global economic recession amid the Covid-19 crisis – a 10.85 percent increase from that the preceding year.
Besides, the country's foreign exchange reserves reached the high-ever to cross the $36 billion-mark.
On the other hand, the country’s export earnings have started turning around as the overall export earnings increased by 85.61 percent or $1.25 billion to stand at $2.71 billion in June.
The country has earned more than $1.46 billion by exporting goods in May, according to the Export Promotion Bureau.
The figure was only $0.52 billion in April.
However, the country’s export earnings stood at $33.67 billion in fiscal 2019-20.
The readymade garment sector, the highest export earner of the country has started overcoming the crisis created by the Covid-19 pandemic as around 80 percent of the cancelled and suspended orders have been restored and fresh orders are also pouring in, insiders said.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders said that the previously placed orders which were cancelled or suspended along with fresh ones are coming back with certain conditions from the buyers.
Confirming the matter, BGMEA president Rubana Huq said, more than 80 percent of the cancelled and suspended work orders have returned to the sector.
But in terms of payment buyers are asking for time, in some cases, for one year, she said.
However, buyers are placing with long lead times, that is, they will receive their orders next year, she added.
Anyway, at least we are coming out of the cancellation of the purchase orders, she mentioned.
However, the country’s earnings from readymade garment (RMG) exports stood at $27.94 billion during FY20.
Former lead economist of the World Bank Dr Zahid Hussain told Bangladesh Post, “The economy is slowly turning around as the Covid-19 has gradually reduced across the world during several months.
“Many countries have now opened their borders,” he said adding that now a normal situation has gradually been created.
People including day labourers have returned to work, which is creating a normal situation for the country, he mentioned.
Sustaining the economy now is a bigger challenge, he said, adding that the government needs to take some fresh initiatives to face challenges caused by Covid-19 crisis.
Now we need to think more about production, trade and foreign investment, not growth, he informed.
Restructuring the health sector is now a prerequisite for restoring the economy, Hussain said.
Corona has also created new opportunities in technology, agriculture, textiles and pharmaceuticals, he said adding that these have to be put to use.
Zahid said the economy has not turned around yet, but it is trying to turn around.
With proper training and some technical support given to people, especially the young, the country’s economy will turn around faster and be more sustainable, he mentioned.
Abdus Salam Murshedy, President of Bangladesh Exporters Association, said, “The growth in export earnings towards the end of the financial year is definitely a positive development. This is a positive message as well as good news for the country.”
However, it was already known that there would be more export earnings during this period but in the last two months (March and April), we have not been able to export due to maintaining shutdown to stop spread of Covid-19, he added.
He expects that this trend will continue in the coming months.
