Stimulus increased to aid foreign firms | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
May 30, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, MAY 30, 2025
Stimulus increased to aid foreign firms

Covid-19 in Bangladesh

TBS Report
29 October, 2020, 10:10 pm
Last modified: 29 October, 2020, 10:17 pm

Related News

  • Foreign firms now require Bida registration for govt projects
  • Sea Pearl shareholders allowed to sell 1.62cr shares to foreign firm GEM Global
  • Foreign firms, joint ventures in economic zones to get loans in taka
  • Small firms get less from second round of stimulus
  • Tk150 cr stimulus fund meant for SMEs fully disbursed

Stimulus increased to aid foreign firms

Experts say the assistance to foreign entrepreneurs will send a positive signal to potential foreign investors

TBS Report
29 October, 2020, 10:10 pm
Last modified: 29 October, 2020, 10:17 pm
Photo: Courtesy
Photo: Courtesy

The government's stimulus package for the pandemic-hit industries and service sector has been increased to Tk40,000 crore from Tk33,000 crore to aid foreign entrepreneurs working in the economic and export processing zones, and hi-tech parks.

Foreign firms under A, B and C categories in the economic and export processing zones, and high-tech parks will get the additional Tk7,000 crore as working capital loans, said the central bank's Banking Regulation and Policy Department in a circular on Thursday.

The Bangladesh Bank circular said, "Apart from local industries, foreign-owned and local-foreign joint ventures have also been affected by the virus pandemic. As the firms played a crucial role in job creation in the country, they have also been brought under the stimulus package."

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

To provide loans from the package, the Bangladesh Bank has asked the banks to inform the status of loans availed by the firms in high-tech parks as working capital until 30 June. The banks have been asked to notify the central bank about it within 5 November.

Besides, they have also been asked to mention the demand for loans.

When contacted, Abul Kasem Khan, former president of the Dhaka Chamber of Commerce and Industries (DCCI), told The Business Standard that the initiative to help foreign industries would bring two benefits.

"Firstly, existing foreign investors will be encouraged to invest more in the future. And secondly, new foreign investors will be interested in investing in Bangladesh as the measures would shape a belief that government assistance is available here during any crisis," he said.

Appreciating the government's initiatives to cushion the economy from the blows of the coronavirus crisis, he said the government's prompt measures to recover the economy from pandemic losses are helping businesses a lot. Besides, the aid for foreign firms signals that the government treats everyone equally.

Kasem said the amount of the stimulus package should be further increased if required.

However, Dr Zahid Hussain, former lead economist of Dhaka office of the World Bank, advocated for adding some conditions while aiding foreign entrepreneurs.

He said the stimulus should be given only for staff salary payments so that the firms with damaged exports do not go for layoffs.

Dr Zahid said, "The conditions could be such as only those firms who will not lay off employees will get loans under the package. If workers are not laid off, their income will not shrink, and the overall demand in the economy can be maintained. This will save the country's economy from recession.

"Since the government would subsidise half of the interest of the loans, the money should be given to foreigners with certain conditions. In this case, the best condition would be a pay-roll protection programme to keep the employment unhurt."

The interest rate on loans taken from the stimulus package is 9%. The government will subsidise 4.5% interest while the borrowers will have to bear the rest.

The Policy Research Institute's Executive Director Dr Ahsan H Mansur said large industries no longer need loan support. But the assistance will send a positive signal to foreign investors, which he thinks will come in handy in future.

He said the new entrepreneurs should be provided with support from the package alongside with the old entrepreneurs.

On 5 April, Prime Minister Sheikh Hasina announced a Tk72,750 crore stimulus package to salvage the economy from pandemic fallout. The stimulus later crossed Tk1 lakh crore. Under the package, Tk30,000 crore was allocated as working capital loans for the virus-hit industries and services.

In July, the package was increased by Tk3,000 crore to Tk33,000 crore to pay salaries to workers and employees of export-oriented industries. And now, the amount has been raised by Tk7,000 crore to Tk40,000 crore to aid the foreign and joint ventures.

Meanwhile, another central bank circular said foreign firms in the economic and export processing zones will get temporary accounts for investment.

Top News / Trade

stimulus fund / Foreign firms

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus meets Japanese Prime Minister Ishiba Shigeru in Japan on 30 May 2025. Photo: CA Office
    Bangladesh, Japan to sign Economic Partnership Agreement by year-end
  • File photo of BNP BNP Standing Committee Member Amir Khasru Mahmud Chowdhury
    Speaking about country’s issues in foreign trips won’t solve them: Khasru takes jibe at Yunus
  • Representational image. Photo: Collected
    'Heavy to very heavy' rainfall expected across country as land depression weakens further

MOST VIEWED

  • Photo: Courtesy
    New notes featuring historic, archaeological structures of Bangladesh to be circulated from 1 June
  • Two Memoranda of Understanding were signed at the seminar titled “Bangladesh Seminar on Human Resources,” in Tokyo on 29 May 2025. Photo: CA Press Wing
    Japan to recruit 100,000 Bangladeshi workers over next 5 years
  • BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal
    BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal
  • Representational Photo: Collected
    Country's all jewellery shops to remain indefinitely closed in protest of VP Reponul's arrest: Bajus
  • Khondoker Rashed Maqsood. File Photo: Collected
    Investors urge removal of BSEC chairman in meeting with CA’s special assistant, submit list of demands
  • Illustration: TBS
    Bangladesh repays $3.5b foreign debt in 10 months of FY25

Related News

  • Foreign firms now require Bida registration for govt projects
  • Sea Pearl shareholders allowed to sell 1.62cr shares to foreign firm GEM Global
  • Foreign firms, joint ventures in economic zones to get loans in taka
  • Small firms get less from second round of stimulus
  • Tk150 cr stimulus fund meant for SMEs fully disbursed

Features

Babar Ali, Ikramul Hasan Shakil, and Wasfia Nazreen are leading a bold resurgence in Bangladeshi mountaineering, scaling eight-thousanders like Everest, Annapurna I, and K2. Photos: Collected

Back to 8000 metres: How Bangladesh’s mountaineers emerged from a decade-long pause

4h | Panorama
Photos: Courtesy

Behind the looks: Bangladeshi designers shaping celebrity fashion

6h | Mode
Photo collage of the sailors and their catch. Photos: Shahid Sarkar

Between sky and sea: The thrilling life afloat on a fishing ship

10h | Features
For hundreds of small fishermen living near this delicate area, sustainable fishing is a necessity for their survival. Photo: Syed Zakir Hossain

World Ocean Day: Bangladesh’s ‘Silent Island’ provides a fisheries model for the future

1d | The Big Picture

More Videos from TBS

Six Lakh Sacrificial Animals Ready in Sirajganj for Eid-ul-Adha

Six Lakh Sacrificial Animals Ready in Sirajganj for Eid-ul-Adha

1h | TBS Stories
Six MoUs signed during Chief Advisor's visit to Japan

Six MoUs signed during Chief Advisor's visit to Japan

5h | TBS Today
Record migrant deaths in 2024

Record migrant deaths in 2024

1d | Podcast
Govt likely to trim subsidies in new budget

Govt likely to trim subsidies in new budget

8h | TBS Insight
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net