The unprecedented disruption caused by the corona outbreak will cause a loss of $2.75 billion for Bangladesh’s economy during the April-June quarter due to loss of employment and wages, investment and revenue.

The construction sector will lose the engagement of 3.4 million skilled and unskilled workforce during this period, according to an estimate of the Bangladesh Association of Construction Industry (BACI).

It calculates that the sector would incur a loss of $800 million for lost employment and wages, $1150 million in the area of government revenue like VAT, Tax, duty, $500 million will be lost from the financial institution sector in addition to an investment loss of $340 million.

As per their calculation, the total loss in a quarter is $2.79 billion, which is almost 13.50 per cent of the annual development budget of the government.

Bangladesh Association of Construction Industry (BACI) mostly deals with the execution of government projects under annual development program, most of them are financed directly by government and few by RPA (Reimbursable project Aid).

“It is though premature to assess the loss of the nation but with the statistics and other knowledge-based Information, it can be worked out. This will help the stakeholders and the economic forum of the country for their awareness and advance planning to investigate the same,” said BACI in its assessment report.

The premier association for the construction industry also recommended some strategies to overcome loss and regenerate working capital.

BACI president engineer SM Khorshed Alam said the government should not hold back the development work now. In this situation, if the government can roll out funds in development projects, income will be generated automatically.

The government should focus on attracting foreign direct investment, private sector investment or public-private partnership to run the wheel of economy, he said.

“It will help engage the workers, labourers and employees at work that would ultimately generate income for them,” he told the Daily Sun.

Way Out 

A vigorous networking needs be established with international monitory agencies like IFC, IMF, WB, ADB, JICA and so on to pump in the investment in fast track projects with no delay, BACI said in the report.

It said that private investors should also be invited for infrastructure development projects on PPP arrangements.

Foreign direct investment needs to be encouraged and opportunities should be explored for the investors through framework engagement by the government, it suggests.

Financial support from the financial institutions should be made easier for better cash flow for the sustainability and good resilience of the high and medium scale construction industries.

Engagement of local industries needs to be given priority based on its experience and financial capacity in implementation of the projects either funded by government or by the development partner, BACI said in its report.