ISLAMABAD: Pakistan is estimated to have confronted an financial lack of as much as Rs2.5 trillion due to the Covid-19 pandemic within the present fiscal 12 months.
This was the near-consensus reached by numerous worldwide lending businesses and totally different arms of the federal government attending a gathering presided over by Adviser to the Prime Minister on Finance and Income Dr Abdul Hafeez Shaikh.
Additionally they agreed that the pandemic would have a spillover affect within the subsequent fiscal 12 months.
The assembly was knowledgeable that the dimensions of the nationwide financial system as measured by the gross home product (GDP) had shrunk from Rs44tr to about Rs41.5tr, down by Rs2.5tr.
One other estimate put the loss at about Rs1.6tr based mostly on the expansion charge. Underneath this estimate, the GDP was initially estimated to develop by 3pc throughout present fiscal 12 months, but it surely really contracted by 0.4pc, which meant the whole GDP lack of 3.6pc or Rs1.58tr.
Pandemic will even have a spillover affect within the subsequent fiscal 12 months
For the following 12 months, too, the Planning Fee has estimated the GDP progress charge of two.3pc however the ministry of finance, State Financial institution of Pakistan, Asian Growth Financial institution, the World Financial institution and the UNDP don’t contemplate it to be a sensible estimate they usually have projected about 1.9pc progress charge for the following 12 months given the continuation of contraction affect in Pakistan’s buying and selling companions and home financial challenges.
Mr Shaikh requested the worldwide growth companions and the federal government businesses to proceed evaluating the losses suffered by Pakistan’s financial system resulting from Covid-19 to assist the federal government give you a swift and sturdy coverage response.
The assembly was held to guage the financial losses suffered by the nation’s financial system resulting from Covid-19.
The assembly was additionally attended by Minister for Industries and Manufacturing Mr Hammad Azhar, Adviser to the Prime Minister on Commerce and Funding Abdul Razak Dawood and senior officers of the finance division.
The adviser appreciated what he referred to as a superb work executed by the Planning Fee, the State Financial institution of Pakistan and the event companions in assessing and evaluating the losses suffered by the nation’s financial system within the wake of Covid-19.
He stated that the federal government had introduced its Rs1.2tr stimulus bundle not solely to assist the companies but in addition to assist the poorest segments of the individuals to alleviate their miseries and struggling to some extent.
Earlier, the State Financial institution of Pakistan Governor, Reza Baqir, who attended the assembly by Zoom, offered an in depth evaluation of the State Financial institution of Pakistan in addition to its coverage response to the financial affect of Covid-19.
Mr Xiaohong Yang, Nation Director for Asian Growth Financial institution in Pakistan, additionally gave an in depth presentation on the financial losses suffered by nations in Asia on the whole and by Pakistan particularly resulting from Coronavirus.
The information offered by the ADB additionally confirmed promising indicators of restoration in Pakistan’s financial system within the post-Covid-19 state of affairs.
Through the assembly, Julien Harneis, United Nations Resident Humanitarian Coordinator in Pakistan, and Mr Patchamuthu Illangovan, Nation Director of the World Financial institution in Pakistan, additionally offered comparable information.
Mr Asif Saeed, Member of Planning Fee, additionally offered an in depth report ready on the instruction of the federal government on financial losses suffered by the financial system resulting from Covid-19.
Revealed in Daybreak, June sixth, 2020