The Covid-19 pandemic has proved itself to be one of the most vital challenges to overall development both locally and globally. The worldwide crisis has drastically worsened global poverty with the number of additional poor reaching up to 100 million by 2020. For developing countries like Bangladesh, economic stagnation has pushed a large population back into poverty. The country's national poverty rate rose to 29.5 percent in the first couple of months after the first case was detected. Using secondary literature mostly newspapers, online data sources and journal articles, the study portrays the new dimension of poverty during the pandemic. It also highlights responses from people and policies employed by the government to tackle the loss. Though the government has taken a number of initiatives to stabilize the economy, the results are yet to show impact. Considering the present findings, it is essential to implement the national development strategies initiated already, and introduce time-oriented policies to help manage the pandemic as well as meet the goal of eradicating poverty in all its forms by 2030.