NASCIB urges govt to form Tk1300cr fund for MSMEs

Leaders of the National Association of Small Cottage Industries of Bangladesh (NASCIB) have urged the government to provide loans for the micro, small and medium enterprises (MSMEs) hardest-hit by the Covid-19 pandemic through the Bangladesh Small and Cottage Industries Corporation (BSCIC).  

They recommended forming a special Tk1300cr fund— Tk800 crore from BSCIC, and Tk500 crore from SME Foundation, said a media statement.

Such a fund can help grassroots-level entrepreneurs recover from economic setbacks caused by the pandemic, reviving the country's economy, they said.

The country's MSME leaders put forth this demand during a dialogue titled, "Dialogue on Impact of Covid-19 on Small and Cottage Industries and Implementation of SME Policy-2019" held at the Industries Ministry in the capital on Wednesday. 

National Association of Small Cottage Industries of Bangladesh (NASCIB) and Action Aid Bangladesh jointly organised the event where Salahuddin Mahmood, additional secretary to the Industries Ministry was present as chief guest. 

Mirza Nurul Ghani Shovon, president of NASCIB presided over the event. Md Salim Ullah, senior assistant secretary to the Industries Ministry and Md Hatem Ali, deputy manager, Action Aid separately presented two essays on the topic. 

Md Shafiqul Islam, managing director of SME Foundation; Alamgir Hossain, director of BSCIC; Nishchinta Kumer Podder, director of National Productivity Organisation; and Asgar Ali Sabri, director, Action Aid, were present among others at the event.

Taking part in the open discussion, MSME representatives said the grassroots-level MSMEs had taken the biggest blows due to the Covid-19 pandemic. Many had lost operating profits with a decline in sales during the pandemic. 

Owing to their reduced networks with banks and other financial institutions, these entrepreneurs were still deprived of the government-announced stimulus package, they said.

During the meeting, sector leaders urged the government to take steps to ensure easy-term loans for MSMEs.  

They also suggested that relevant authorities form a central monitoring committee with key stakeholders to revive the post-Covid economy through the implementation of the national SME Policy-2019.

Business representatives said MSMEs are the forerunner of the progress of the country's economy. Though this sector has contributed 25% to Bangladesh's Gross Domestic Product (GDP), entrepreneurs in this sector are not getting prioritized for government loans from the announced Covid incentive packages. 

A lion's share of Tk20,000 crore earmarked for MSMEs in the stimulus package still remains unused. Special attention is needed here for proper disbursement of this fund, so that impacted MSMEs can revive businesses, they said. 

In his remarks, Salahuddin Mahmood said MSME entrepreneurs are key drivers of the national economy that have been severely affected by the pandemic. 

He also said that the government is working on ensuring funding for these entrepreneurs.

At the beginning of the coronavirus pandemic in the country, Prime Minister Sheikh Hasina had announced a stimulus package of over Tk1.3 lakh crore for domestic businesses to enable their recovery from the onslaught of the pandemic.