"Covid-19 has pushed the global economies towards a recession," notes the Pakistan Economic Survey FY2020, unveiled on Thursday by Adviser to the Prime Minister on Finance Hafeez Sheikh.

"Pakistan has also been affected by the unprecedented health and economic shocks caused by the outbreak of coronavirus. During the current fiscal year, Pakistan’s economy has undergone a sharp contraction as growth is recorded at -0.4 per cent. To mitigate the socio-economic impact of the pandemic, the government announced a stimulus package of Rs 1.24 trillion, and offered further relief measures through the State Bank."

Policy rate was also cut by 5.25 per cent to 8.0 per cent.

"The monetary and fiscal policy interventions have been made to restore the economic activity in this difficult time and to reduce negative effects on poverty and unemployment. Cognisant of the extended duration and uncertainty of the Covid-19 worldwide, the government has chalked out sector-specific policy interventions and structural reforms to cope with the situation."

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