Hafeez Shaikh elaborates govt’s financial plan amid COVID-19 disaster

Abdul Hafeez Shaikh, whereas addressing a press convention in Islamabad at present, expressed concern of extra impacts on the nationwide economic system as a result of unfold of coronavirus pandemic that has additionally disturbed financial actions together with exports and remittances.
“Our economy was heading towards stability and exports were rising which reduced the current account deficit to $3 billion from $20 billion. Pakistan had paid foreign loans worth $4 billion while the country’s efforts were being appreciated for economic revival. Pakistan’s revenue collections were historical in the last eight months and it was increased up to 17 per cent as compared to the previous year.”
“However, the economy is likely to suffer an impact due to the spread of coronavirus pandemic just like it is producing a major financial loss to other countries around the world. We have dispatched additional funds to the province and more funds are given to the provinces under NFC,” stated Hafeez Shaikh.
“The Centre and provinces are moving forward with full coordination. The federal government has allocated Rs200 billion for labourers and daily wage workers. This amount will be given by the Centre while provinces will also add shares into the funds.”
“Prime Minister Imran Khan approved a relief package worth Rs1.25 trillion. The authorities will make tax refunds to export sector up to Rs100 billion, whereas, Rs100 billion apportioned for agriculture and SME. We will provide subsidised products after cutting prices of urea. SMEs will be given more time for the payments of interest and dues.”
“The state authorities will provide financial aid to 12 million families and deserving families will be given Rs3000 per month for the next four months. Rs50 billion will be spent on subsidy for daily use commodities like pulses, rice, oil and sugar and others in utility stores.”
“Rs280 billion is allocated for the purchase of 82 lakh tons of wheat from farmers. The interest rate was also reduced to 12.25 per cent during the last days. The government will immediately cut prices of petroleum products up to Rs15 per litre, whereas, nationals will be given a facility to pay electricity and gas bills in instalments of three months,” stated the finance adviser.
“Taxes will be ended on many food items and a reduction will be made on some other products. Rs25 billion will be spent on purchases of vaccines and necessary equipment for NDMA [National Disaster Management Authority].”
“Pakistan is likely to get $350 billion financial assistance from Asian Development Bank (ADB). The government will expedite the PSDP [Public Sector Development Programme] and end CVT in the capital market. Moreover, the World Bank agreed to provide $1 billion to Pakistan to fight coronavirus.”
“We have also contacted the IMF [International Monetary Fund] for providing an additional fund worth $1.4 billion and still in talks with ADB. At this time, the government is engaged in fast track dialogues with IMF mission.”
“The concerned authorities will start refunds to exporters from the current month and the subsidy of Rs200 billion will be expanded to the lower level. We are finalising a procedure which will be unveiled soon.”
Particular Assistant to Prime Minister on Petroleum Nadeem Babar stated they may assessment response after modifying costs of the petroleum merchandise. He added {that a} associated discussion board will finalise all issues, whereas, the petroleum-related developments will even be mentioned within the Financial Coordination Committee (ECC).
“We will certainly face issues every day however it will likely be resolved at earliest. Yesterday, the workers members of Liquefied Pure Fuel (LNG) terminal had been stopped from duties in Karachi. Nonetheless, the matter was instantly resolved after contacting the Sindh authorities. Now we have issued passes to the staffers of the LNG terminal. In the meantime, we’re additionally resolving points being confronted by transporters in Gilgit-Baltistan (GB).
Commerce Adviser Abdul Razak Dawood stated the selections shall be additional elaborated within the subsequent session of Nationwide Coordination Committee (NCC) summoned tomorrow (Thursday). He added that the federal government has made choices in view of difficulties being confronted by the industries.
Federal Minister for Financial Affairs Hammad Azhar elaborated that Pakistan acquired $600 million monetary help from ADB and WB, whereas, the funds from completely different tasks will even be dispatched at a quick tempo.
Hammad Azhar stated the authorities are utilising all accessible sources to cut back coronavirus impacts and the federal government will even transfer to completely different establishments for a funds assist bundle.

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