Task force needed for proper disbursal of stimulus package: CPD
The think-tank recommends the government excludes poorly governed banks from stimulus distribution activities to ensure proper implementation of the disbursement
The Centre for Policy Dialogue (CPD) has urged the government to formulate a task force to reduce corruption in the disbursement of a stimulus package declared by the government.
The think-tank recommended that the government excludes poorly governed banks from stimulus distribution activities to ensure proper implementation of the disbursement.
"Banks are more interested in lending to large borrowers than small ones. Thus, the design of the stimulus packages and distribution seems 'k' shaped, splitting the economic recovery path in two directions," said Towfiqul Islam Khan, a senior research fellow at CPD, while presenting the keynote paper at a virtual press briefing on Monday organised by CPD.
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"Large firms and public-sector institutions with direct access to stimulus packages are making economy recovery fast while the small and medium-sized enterprises, blue-collar workers and the under-pressure middle class are left behind," Towfiqul added.
So, the government should send cash directly to real needy ones, ensuring transparency and accountability as these are the key to successful operation and implementation. Lack of data integrity in recent years has hindered the effectiveness of policies and directives of the government and central bank, endangering the overall economic progress of the country, he said.
CPD recommended the government sets some specific criteria to identify the "affected" ones and disturb the fund immediately.
The government should also formulate a target-oriented post-pandemic recovery plan by thoroughly assessing the number of damages caused by Covid-19 and how much support is essential for recovery.
Experts at the programme also recommended forming a multi-stakeholder task force comprising representatives from ministries, central bank, commercial banks, trade bodies, civil society, non-government organisations and academia to monitor the overall progress of the disbursement.
Raising public awareness about the stimulus package has also been termed as crucial.
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