- The International Monetary Fund (IMF) notes that the economic outlook of the country has evidently worsened and the growth expected in 2020 is -0.4 per cent. However, the IMF further states that a recovery although slow, is expected in 2021 when the economy reopens.
- The report by IMF states that the federal government partnered with provincial governments, have been gradually easing lockdown strategies since mid- April. With proper standard operating procedures, ‘low risk industries’ and ‘small retail shops’ have been allowed to continue with their businesses.
- Funds have also been transferred to the National Disaster Management Authority to purchase Covid-19 related equipment. Moreover, the provincial governments have also been providing cash grants to the low-income households, says the report.
As per the report ‘Policy Actions taken by countries’, Pakistan has taken various steps to help deal with the Covid-19 breakout since first in March. The International Monetary Fund (IMF) notes that the economic outlook of the country has evidently worsened and the growth expected in 2020 is -0.4 per cent. However, the IMF further states that a recovery although slow, is expected in 2021 when the economy reopens. A relief package was introduced on March 24 which is being implemented now and also for the year 2020-2021.
The limitations on domestic and international involvements have been lifted and educational institutes are also expected to re-open by September 15. The selective lockdown scheme however still remains with closure of shops on weekends and sealing of areas of high risk. The report by IMF states that the federal government partnered with provincial governments, have been gradually easing lockdown strategies since mid- April. With proper standard operating procedures, ‘low risk industries’ and ‘small retail shops’ have been allowed to continue with their businesses.
The report also makes mention of the provision of tax incentives to the construction sector to tend to the employment gaps generated by the sudden lock downs. The key measure taken by the federal government include suspension of import duties on health equipment, accelerated tax refunds to the export industry as well as financial support to the agriculture sector. Funds have also been transferred to the National Disaster Management Authority to purchase Covid-19 related equipment. Moreover, the provincial governments have also been providing cash grants to the low-income households, says the report.
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