Pakistan’s economy to recover in FY21: IMF

ISLAMABAD: Pakistan’s economy to gradually recover in the fiscal year 2021 as the government reopens the economy, read “Policy Actions Taken by Countries”- a report issued by the International Monetary Fund (IMF).

The international financial institution reported the steps taken by the government to mitigate the economic repercussions of COVID-19.

The steps taken to ensure economic recovery included ease in lockdowns and implementing smart lockdowns. Under this arrangement, high-risk areas have been sealed, with tests in the vicinity being carried out.

The government had announced a relief package worth Rs1.2 trillion. Through this, a sum of Rs200 billion was allocated to support daily wagers. A relief of Rs144 billion was earmarked for low-income groups.

The federal government also accelerated tax refunds to the export industry, and about 65% have already been disbursed.

Financial support to Small and Medium Enterprises (SMEs) and the agriculture sector was also extended under the announced relief package.

To kickstart the economy, the government announced an Rs100 billion relief package for the construction industry.

The ‘low-risk industries’ and ‘small retail shops’ were also allowed to start activities, while implementing the issued Standard Operating Procedures (SOPs). The shops will remain closed on weekends.

The federal and provincial governments generously transferred emergency contingency funds to the National Disaster Management Authority to battle COVID-19 outbreak, along with the allocation of funds for the procurement of medical supplies and equipment, wheat and other food supplies.

The imposed restrictions on domestic and international travels have also been lifted. The government is currently planning on when to resume educational institutions.

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