Islamabad: The International Monetary Fund (IMF) predicted on Friday that Pakistan’s economy will recover within the fiscal year 2021.
In a report entitled “Policy Actions Taken by the State”, the International Monetary Fund stated that with the reopening of the economy, the Pakistani economy is expected to gradually recover in FY2021.
The report highlights measures taken by the current government to control the spread of COVID-19.
It said that since mid-April, the federal government has coordinated with the provinces to gradually relax the blockade, allowing low-risk industries to resume operations, and small retail stores to reopen using newly established standard operating procedures.
In addition, with the resumption of domestic flights, train services and international flights, restrictions on domestic and international activities have also been lifted.
The report stated that by closing stores and blocking high-risk specific areas on weekends, selective locking arrangements were preserved.
It said the federal government announced a relief plan worth 1.2 trillion rupees on March 24, which is currently being implemented and will be implemented in the 2020-21 fiscal year.
The report mentions key measures taken by the federal and provincial governments to mitigate the economic impact of the coronavirus pandemic.
These measures include the elimination of import duties on emergency medical equipment; cash transfers to 6.2 million daily-paid workers worth Rs 75 crore; cash transfers to more than 12 million low-income families worth Rs 150 crore; value to small and medium enterprises and the agricultural sector 100 billion rupees of electricity, including deferred electricity, bank loans, subsidies and tax incentives.
The report says that since the crisis broke out, the provincial government has also been implementing supportive fiscal measures, including providing cash subsidies to low-income families, tax breaks and additional medical expenses.