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[media type="image" id="940125" layout="portrait" position="right" caption="1"][/media] Although the government said that it would reduce the taxes levied on the import of raw materials used to make cement, this initiative will not have a satisfactory impact as prices would remain the same at the consumer level, according to market players. While announcing the proposed
Construction costs burdened with cement price rise
Construction costs have been rising since March with each 50-kilogramme bag of cement now costing around Tk 50 more to sell for anywhere between Tk 450 and Tk 460. Photo: SK Enamul Haq
The price of each 50-kilogramme bag of cement has increased by around 12 per cent, or Tk 50, to Tk 450 to Tk 460 a development that will push up construction costs, be it the government s development projects or privately-owned buildings.
The price increased in mid-March as a knock-on effect from a rise in prices of clinker, the main raw material, in the international market alongside that of shipping costs.
Sudden ‘lockdown’ to affect operations management
Big businesses say
Big businesses say
Industrialists have found it difficult to instantly implement emergency measures for the smooth continuation of manufacturing operations after the government suddenly announced a nationwide lockdown to curb the spread of Covid-19.
Corporate offices will be run online while a physical presence will be available on an emergency basis during the seven-day lockdown beginning today.
But despite their difficulties, industrialists agree with the government s decision, believing that it would not have too much of an impact on the economy. The sudden lockdown led to slight difficulties but there is no alternative to tame the ongoing situation, said Mostafa Kamal, chairman and managing director of Meghna Group of Industries (MGI), a leading conglomerate in Bangladesh.
Businesses are experiencing an uneven recovery from the pandemic-induced slowdown as larger firms are bouncing back strongly thanks to the easy access to the stimulus packages while the smaller ones are still mired in the crisis.
The large industrial and service sectors have made as much as 80-90 per cent recovery compared to the pre-pandemic level. It is only 30-40 per cent for small and medium enterprises.
Since March, the government has unveiled 21 stimulus packages involving more than Tk 120,000 crore, which is about 4.5 per cent of the GDP of Bangladesh and one of the largest in the world.
Businesses belonging to the large industrial and service sectors have managed loans smoothly, whereas small enterprises have been largely deprived.