IMF predicts economic recovery in Pakistan next year

Published July 10, 2020
The IMF notes that the near-term economic outlook of the country has worsened notably, and growth is estimated at –0.4 per cent in FY 2020. — AFP/File
The IMF notes that the near-term economic outlook of the country has worsened notably, and growth is estimated at –0.4 per cent in FY 2020. — AFP/File

WASHINGTON: A gradual recovery in Pakistan is expected in the fiscal year 2021 as the country’s economy reopens, says a report released by the Inter­natio­nal Monetary Fund (IMF).

The report — “Policy Act­ions Taken by Countries” – reviews various steps Pakis­tan has taken since March to deal with the Covid-19 crisis.

The IMF notes that the near-term economic outlook of the country has worsened notably, and growth is estimated at –0.4 per cent in FY 2020.

According to this report, since mid-April, the federal government, in coordination with the provinces, has been gradually easing lockdown arrangements, by allowing ‘low-risk industries’ to restart operation and ‘small retail shops’ to reopen with newly developed Standard Operating Procedures.

In addition, restrictions on domestic and international movements have been lifted and educational institutes are expected to restart on July 15. ‘Selective’ lockdown arrangements remain in place, through the closure of shops on weekends and the sealing of specific areas of high risk.

A relief package worth Rs1.2 trillion was annou­nced on March 24, which is now being implemented and will be pursued in the fiscal year 2020-21. The report then details various measures taken by both federal and provincial governments to ease the economic impact of this pandemic.

Key measures by the federal government: elimination of import duties on emergency health equipment; cash transfers to 6.2 million daily wage workers, cash transfers to more than 12m low-income families; accelerated tax refunds to the export industry, out of which 65pc have already been disbursed, and financial support to SMEs and the agriculture sector.

The report notes that the economic package also earmarks resources for an accelerated procurement of wheat, support for health and food supplies, an emergency contingency fund, and a transfer to the Nat­ional Disaster Management Authority for the purchase of Covid-19 related equipment.

The report also mentions the provision of tax incentives to the construction sector to address the acute employment needs generated by the lockdowns.

The provincial governments, according to this report, have been also implementing supportive fiscal measures, consisting of cash grants to the low-income households, tax relief and additional health spending.

Published in Dawn, July 10th, 2020

Opinion

New engagement
Updated 19 Apr 2021

New engagement

Better Pak-India ties mean a better regional outcome.
Inequality and ideology
19 Apr 2021

Inequality and ideology

Hunger and want, and the constant reminder of inequality,may condition religious mobilisation, but they are not solely sufficient.
Ties of sentiment
19 Apr 2021

Ties of sentiment

Pakistan-UK relations have been remarkably stable and increasingly energised by the Pakistani diaspora.

Editorial

19 Apr 2021

Vaccine shortfall

THE hope that the slew of Covid-19 vaccinations approved for use since the end of last year would vanquish the ...
Another package
Updated 19 Apr 2021

Another package

Sindh has not seen much development worth the name during the PPP’s more than decade-long rule in the province.
19 Apr 2021

Cricket triumph

TEAM Pakistan have a number of reasons to rejoice after their 3-1 T20 series win over hosts South Africa on Friday....
18 Apr 2021

More cabinet changes

PRIME MINISTER Imran Khan has reshuffled his cabinet yet again in what is obviously another attempt to shore up his...
Blocking social media
Updated 18 Apr 2021

Blocking social media

FOR four hours this week, all social media platforms in the country were shut down, a measure the government said ...
18 Apr 2021

Peasant rights in Sindh

IN a seminar held in Nawabshah recently, the Sindh Human Rights Commission and Hari Welfare Association reiterated a...