CPD for incentive to banks for extending credit to women entrepreneurs

The Centre for Policy Dialogue (CPD) on Sunday suggested for special incentives to commercial banks for extending credit to women entrepreneurs.

The local think tank also recommended for ensuring stimulus packages for women entrepreneurs, adopting multistakeholder approach to identify gender-specific needs, strengthening technical education and apprenticeship on digital literacy, and reducing pressure of unpaid care work.

The organisation also suggested for developing loan policy considering gender-specific issues, ratifying ILO conventions-related gender issues including Convention 190, and encouraging women to join trade unions and workers’ organisations.

The observations came up at an event organised by CPD and The Asia Foundation Bangladesh titled, “Covid-induced Stimulus Packages for SMEs & Women-led Enterprises: Exploring Research-Policy Interlinkages” at a city hotel.

CPD Executive Director Dr Fahmida Khatun moderated the event and its Research Director Dr Khondaker Golam Moazzem presented the keynote paper titled, “Did Research Get Attention in Covid-induced Public Policy Responses? Analysis on Research-Policy Interlinkages on MCSMEs and Women-led Enterprises”.

Dr Moazzem said due to lack of sufficient guidance from the policymakers in case of selecting borrowers, the packages have been made broad-based covering all the small and medium enterprises (SMEs).

“Thus, a number of challenges emerged in the selection process such as lack in specification of area, gender and racial issues,” he observed adding that their study aimed to examine the relationship between public policies and research during the period of the pandemic.

Dr Moazzem said during the pandemic period, a total of 27 stimulus packages have been announced with a combined fiscal and financial support of Tk 1.29 trillion.

“Overall stimulus packages include a diverse range of intervention. But the support for SMEs and women entrepreneurs are rather insignificant. Particularly, coverage for women entrepreneurs is limited,” he added.

He informed that Bangladesh Bank has created several refinancing schemes totalling Tk 415 billion.

Out of these, Tk 200 billion has been announced for SMEs as refinance facility. Additionally, Tk 15 billion package has been announced for the microcredit and marginal people's lifestyle development programme, he said.

Country Representative of The Asia Foundation – Bangladesh Kazi Faisal Bin Seraj delivered the introductory speech at the event where Local Government, Rural Development and Cooperatives Minister Md Tazul Islam attended as the chief guest.