Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Dhaka Chamber of Commerce and Industry (DCCI) on Sunday appreciated the government for introducing universal pension scheme (UPS).
Terming the scheme a timely move for inclusive socio-economic change, DCCI president Barrister Md Sameer Sattar said the scheme is an opportune and pro-people move taken by the government for inclusive and sustainable social safety net for the greater socio-economic development of the country.
"This move will create a new era in the economic history of Bangladesh," he said in a statement issued on Sunday.
UPS offers four types of people-friendly packages including 'Pragati', 'Surokkha', 'Samata' and 'Prabashi' targeting different communities especially private sector employees, NRBs, informal sector and low-income group people.
He hoped that this scheme will be able to bring a large number of people of the society under its coverage.
The option of 50 per cent contribution by the government for the insolvent depositors under the 'Samata' scheme is also a remarkable move, Mr Sattar commented.
Against the backdrop of global economic meltdown and fiscal austerity, Mr Sattar said, the UPS will augment financial flow in the economy.
"This scheme is expected to benefit the vulnerable citizens with social security reducing poverty and social safety cost in national budget in future," he stated.
He said this initiative is result-oriented and rewarding not only for the welfare of the mass people but also for best interests of the private sector.
He further said the UPS is expected to rationalise the public sector bank borrowing and make new financing streams to meet the evolving fiscal needs of the government.
"It may also help smoothen the private sector credit flow and reduce foreign borrowing to some extent resulting in a hike of the investment to GDP ratio. Alongside, this may also help make the cost of fund for private sector very competitive among different financing options," he viewed.
The head of the DCCI also said this scheme is also likely to support the huge number of employees working in the large local conglomerates to MSMEs in private sector for employment retention, productivity of employees and fiscal safety at their old age through the 'Pragati' package.
The DCCI chief emphasised competitive and secure return for its depositors, good governance and management of this public fund to attract people and accelerate this timely scheme in the long run.