The Bangladesh government has announced a package of BDT1,000mn to help steel manufacturers tide over the economic recession in the wake of COVID-19 outbreak.
This announcement comes after the Bangladesh Steel Manufacturers Association (BSMA) submitted a proposal to the Prime Minister’s Office.
Bangladesh’s steel industry is entirely dependent on the domestic consumption which stands at 8mn mt a year. It contributes 2.2pc to the country’s GDP.
BSMA estimates that production and sales of the steel industry amid the pandemic were 40pc of usual levels. Most government and private projects remained shuttered as the country announced social distancing measures.
Steel demand in Bangladesh is mainly driven by development projects, especially those under the Annual Development Programme included in the yearly budget. The association proposes new strategies which could help them continue activities while ensuring sufficient protective measures.
The steel industry contributed BDT99.5bn or 22.84pc to the national exchequer in 2018-19.