Macro Analysis /
Bangladesh

Bangladesh extends lockdown – factories, banks and bourses open; offices closed

  • Factories to remain open; no public transport except product vehicles to ply; malls and shops to remain closed

  • Offices are closed but banks and bourses will be open with curtailed operating hours

  • Earlier lockdown had minimal impact on economic activities as most of the restrictions were relaxed gradually

Shopnil Paul
Shopnil Paul

Research Associate

S. M. Galibur Rahman
IDLC Securities
13 April 2021
Published by

The Bangladesh government has decided to extend the current ongoing lockdown for another eight days to curb the increasing number of Covid-19 cases. The first phase of lockdown was in place from 5-11 April 2021, which was then extended for another two days. Note that the government has decided to impose more restrictions this time – all shops, malls, offices, and public transports to remain shut. However, emergency and essential services will be out of the restriction.

Factories will remain open during the lockdown; no restrictions on supply chain management

During the newly imposed week-long lockdown, factories can operate, ensuring health regulation. Although public transports will be shut down including international flights, vehicles related to manufacturing facilities or carrying goods will not be under such restrictions. The offices of airports, landports and seaports will also be open to facilitate the imports, exports, and domestic transports of goods. Branches of banks near ports will be open to facilitate the relevant transactions.

Banks and MFS will be open to service, all other offices to remain closed

All types of government and private offices are asked to remain closed from April 14-21. However, banks will be open to service with curtailed banking hours (from 10am-1pm). Moreover, the central bank has increased the daily limit of cash withdrawal from ATM booths to BDT100,000 during the lockdown from the existing limit of BDT50,000. Mobile Financial Services (MFS) are also instructed to provide uninterrupted services during the period.

Bourses are open with curtailed trading hours

According to a press note from Bangladesh Securities and Exchange Commission, both bourses of the country will also remain open. However, trading hours in bourses will be shortened since banking hours have been curtailed.

Update on the previous nine days: The first phase of the week-long lockdown in 2021 was gradually relaxed

The first phase of the week-long lockdown in 2021 started on 5 April and continued till 13 April. From the beginning of the period, factories and offices were allowed to operate with reduced manpower. Banks and bourses were also open, but with shortened banking and trading hours. Although public transports and shopping malls were initially instructed to remain shut, the restriction was relaxed later. Public transports started from 7 April and shopping malls were allowed to open from 9 April. As a result, the impact of the first phase of the lockdown on the daily business activities was low.