The International Monetary Fund (IMF) expected a rebound in Pakistan’s economy during the financial year 2021. In a study entitled “Policy Actions Taken by Countries,” IMF reported that a gradual improvement in Pakistan’s economy is anticipated in fiscal year 2021 as the economy reopens. The report highlighted the steps the present government has taken to curb COVID-19 spread.
It says since mid-April, the federal government has been slowly easing the lockout in collaboration with provinces, enabling low-risk industries to restart operations and small retail shops to reopen with newly established Standard Operating Procedures.
In addition, limits on domestic and foreign movements with the resumption of domestic airlines, rail services, and international flights have been lifted. The report says that selective lockdown arrangements remain in place, by closing shops on weekends and sealing specific high-risk areas.
It says the federal government announced on March 24 a relief package worth 1.2 trillion rupees which is now being implemented and will be pursued in fiscal year 2020-21. The report mentions key actions that the federal and provincial governments have taken to ease the economic impact of the Coronavirus pandemic.
These include elimination of import duties on emergency healthcare facilities; cash transfers to 6.2 million regular wage employees worth 75 billion rupees; cash transfers to more than 12 million low-income families worth 150 billion rupees; fiscal support for small and medium-sized enterprises and the agricultural sector worth 100 billion rupees in the shape of power bank loans, bill deferment, and subsidies and tax incentives.
The report says provincial governments have also been implementing supporting fiscal measures since the onset of the crisis, consisting of cash grants for low-income households, tax relief and additional health expenditures.
Extracted from City42 News