With the current estimates of negative 1.5, GDP growth rate due to the COVID-19 pandemic effect, the country’s economy will turn around to see 2 percent growth in the upcoming fiscal year (2020-21), said Dr. Abdul Hafeez Shaikh, Prime Minister’s Adviser on Finance and Revenue.
Participating in a webinar on ‘Pakistan Economy: PostCOVID-19,’ organized by the Institute of Chartered Accountant of Pakistan (ICAP), the advisor said Pakistan anticipated growth of about 3 percent in the current fiscal year, but it would end up negative 1 to 1.5 percent due to the impact of Coronavirus.
Unemployment was increasing due to the lockdown and weak economic activity, although the collection of revenues also declined. So, it was going to impact the spending side. Hafeez said the government had taken decisive steps and launched an Rs1.2 trillion economic stimulus package to help companies and disadvantaged segments of society address the coronavirus challenges.
He said the IMF supported the government’s stimulus package, which was implemented by the government to check economic recession, while the package given to the construction industry would also help sustain economic activity. He said the country was facing a severe economic crisis when the government came to power, but struggles were made to get Pakistan out of those crises while taking some tough decisions that eventually yielded results.
The current amount deficit had been reduced from $20 billion to just $3 billion, he said. Similarly, sluggish exports have begun to see growth while rupees have been allowed to find the right value in the market.
Extracted from City42 News