ISLAMABAD: The United Nations Under-Secretary-General and the head of UN Regional Commission for Asia and the Pacific, Armida Salsiah Alijahbana,  has said that Pakistan needs to adopt a nuanced approach in designing quarantine measures, close monitoring of the economic impacts and fast reaction in making necessary policy adjustments to respond to the Covid-19 pandemic.

“Well-targeted emergency fiscal support is also required to adequately strengthen the health system and support jobs and living standards, and it is good to see that some of these actions are already being taken by the government,” the Executive Secretary of UN-ESCAP said in a written interview on Covid-19 impact on Pakistan.

The first priority of the Pakistan government should be taking complementary actions to minimise disruptions of lockdown and other quarantine measures on essential production sectors like medicine and food, essential domestic value chains and logistic arteries and household supplies, Ms Alijahbana said.

She said that business policies should include targeted tax exemptions and fiscal subsidies to SMEs and the most-affected business sectors, including the informal sector.

For livelihood, emergency measures are required such as extending medical and employment insurance to those not sufficiently covered and providing direct cash to these segments of society, she said.

“The first priority should be taking actions minimising disruptions of lockdown and other quarantine measures on essential production sectors like medicine and food, essential domestic value chains and logistical arteries and household goods,” she said.

The UN-ESCAP head stated that social protection also serves as a stabiliser in times of uncertainty to protect the most vulnerable sections of society. Pakistan is currently spending around 1.5 per cent of its GDP on social protection, which is one of the lowest levels in the region, she said.

“The issue of finding fiscal space for social protection should be understood as one of the nation’s top priorities and it needed the political will,” she said.

“The Covid-19 pandemic is indeed a big challenge for Pakistan, given its already difficult economic and social situation. The pandemic has the potential to drive many more citizens into poverty, due to the loss of income during the lockdown.

“To come out of the crisis, what is needed are fiscal spending measures to contain further spread of the disease to save lives and minimise potential long-term economic damage. Many of the fiscal policies are already being undertaken by the government, however, it needs to put substantial stress on the already high public debt.

“There is a strong association between poverty rates and state fragility, and in Pakistan, for example, one in three people live on less than $3.10 a day. Pakistan also faces large inequalities in access to basic services, including in secondary and higher education, clean fuels and financial services.

“With a few exceptions, countries with higher levels of inequality also rank higher in the 2019 Fragile State Index ranking”, she observed. The UN official observed that inequalities undermine human dignity and social justice. In societies where inequalities abound, collective action is undermined by the pursuit of individual or group interest.

Published in Dawn, April 5th, 2020