Reluctant over imposing a nationwide lockdown against the spread of coronavirus, the prime minister has unveiled a massive economic and financial stimulus package to prevent the adverse economic effects and provide relief to the masses.
The economic package includes a hefty Rs200bn for the working class, Rs100bn for the SMEs along with incentives and tax concessions for the business community and the agricultural sector. These vital sectors have been provided tax refunds, deferred interest payments, and concessional loans facility as industries are deemed necessary for the country.
The coronavirus has wreaked havoc on the government’s economic recovery program for which Pakistan had to secure a bailout package. The IMF has now changed the global growth forecast from three percent to below zero, implying that we are already in the midst of a recession, and the fallout will have repercussions on our economy as well.
The prime minister was hesitant to impose a nationwide lockdown, saying the working class who make up one-quarter of the country relying on daily wages will be the worst affected. He said Pakistan cannot afford similar measures such as China or European countries as we have high poverty rates and the livelihoods of the poor segments will be affected.
In order to ease the suffering of the masses during the shutdown, the prime minister has earmarked Rs150 billion for poor families, raising the cash stipend under BISP, provision of essential items on cheaper rates at utility stores, and allocating funds for procuring wheat among other initiatives.
The government has reduced petroleum prices by Rs15 per litre, which was being anticipated due to the decline in global crude prices. Due to the shutdown, civic utility providers are instructed not to collect bill payments and gas and electricity consumers are being allowed to pay on easy installments. Taxes on several edible items are being reduced to facilitate the common man.
The prime minister has received flak for not imposing a nationwide lockdown as the number of coronavirus cases continues rising across the nation. Instead, the prime minister called for social distancing and other precautions rather than a blanket ban on all forms of movement. The nation should adhere to the government’s advice in their own interest while also allow economic activity.
As the nation heads towards an economic slowdown, this stimulus package can provide necessary relief to the public against the pandemic. The prime minister should lead the nation in times of such extraordinary circumstances and providing hope to a beleaguered nation.
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