International Monetary Fund (IMF) has acknowledged Pakistan's measures to contain spread of the coronavirus.
IMF's recent publication 'Policy Tracker' of its 193 member-states said that COVID-19 has been spreading rapidly in the past month in Pakistan, with 4,489 confirmed cases claiming 63 deaths, as of ninth of this month.
The fund said that the government announced relief package worth 1.2 trillion rupees to help daily wagers, common people of Pakistan and boost economy. Other measures, include quarantining over three thousand travelers from Iran, closing borders with neighboring countries, international travel restrictions, school closures, social distancing measures, and lockdowns in cities and provinces across the country. Pakistan army troops were deployed to help provincial governments in their measures to contain the spread of the virus.
The government announced an economic stimulus package on the fiscal side under which key measures include an elimination of import duties on imports of emergency health equipment, relief to daily wage workers worth 200 billion rupees, 150 billion rupees for cash transfers to low-income families, accelerated tax refunds to the export industry with 100 billion rupees, and financial support of 100 billion rupees to Small and Medium Enterprises.
The economic package also earmarks resources for an accelerated procurement of wheat worth 280 billion rupees, financial support to Utility Stores worth 50 billion rupees, relief in fuel prices with 70 billion rupees, a fund of 15 billion rupees to support health and food supplies, 110 billion rupees for electricity bill payments relief, 100 billion rupees for an emergency contingency fund and a transfer of 25 billion rupees to National Disaster Management Authority for purchase of necessary equipment to deal with the pandemic.
On monetary and macro financial front, the State Bank of Pakistan has responded to the crisis by cutting the policy rate twice by a cumulative 225 basis points to 11.0 percent in the span of less than two weeks in March this year.
The State Bank also announced two new refinancing facilities. First, the 'Temporary Economic Refinancing Facility' worth 100 billion rupees to stimulate investment in new manufacturing plants and machinery at 7 percent fixed for 10 years. Second, the "Refinance Facility for Combating COVID-19" worth five billion rupees to support hospitals and medical centers the purchase of equipment to detect, contain, and treat COVID-19.
