ISLAMABAD: Prime Minister Imran Khan on Tuesday announced his decision to allocate Rs 200 billion to protect the economic interests of laborers and daily wage earners who are likely to find themselves in a tough situation as social distancing becomes imperative to curb the spread of the coronavirus.
Addressing a group of journalists in Islamabad, Khan reiterated that he would not have hesitated to impose a curfew if Pakistan was a developed state where a large chunk of the population was not vulnerable to poverty.
He also expressed his reservations at the decision of provinces to announce a lockdown to prevent the spread of the infectious respiratory disease that has so far been diagnosed in more than 950 people across the country, saying it was unfortunate that Pakistan’s ruling elite mostly took decisions by catering to the interests of the economically privileged sections of the society.
Most opposition parties recently urged the government to take some harsh measures and announce a countrywide lockdown to help implement social distancing and prevent the spread of the pandemic. However, the prime minister repeated refused to make that choice since he maintained it was going to impact the financial well-being of the economically vulnerable segments of the society.
Despite his decision, much of the country found itself in a state of lockdown by Monday night since the provinces took the decision on their own and requisitioned security forces to ensure that there was no unnecessary movement on roads and public places.
Under the circumstances, the prime minister announced Rs 100 billion of tax refunds for exporters and industries to help them spend that money on their workers. He also said that his administration was going to pay Rs 3,000 per month to low income families for the next four months. Other than that, the government also plans to expand its shelter program for the underprivileged and ensure that those who are allowed in are properly screened.
The new economic initiative of the federal administration will also make the utility stores more functional to ensure the availability of all necessary goods and introduce deferred payment plans for households with limited ability to pay electricity and gas bills.
Summing up the government’s initiative, the country’s minister for economic affairs, Hammad Azhar, wrote in a Twitter post: “The govt of Pakistan has announced Rs 1200 billion Econ Relief and stimulus Package. It seeks to provide relief to vulnerable, support to poor, SMEs, industry. Deferment of utility bills of lower income grps, principal + interest for businesses, reduction in fuel prices and more.”
The govt of Pakistan has announced Rs 1200 billion Econ Relief and stimulus Package.
It seeks to provide relief to vulnerable, support to poor, SMEs, industry. Deferment of utility bills of lower income grps, principal + interest for businesses, reduction in fuel prices and more— Hammad Azhar (@Hammad_Azhar) March 24, 2020
Meanwhile, the Monetary Policy Committee (MPC) of Pakistan’s central bank decided to slash the policy rate to 11 percent.
“The MPC has decided to cut the policy rate by a further 150 basis points to 11 percent,” read an official handout circulated by the State Bank of Pakistan. “This brings the cumulative easing over the past one week to 225 basis points. The MPC was of the view that this cumulative easing would cushion the growth slowdown while protecting inflation expectations.”
The central bank added it was prepared to take further decision in this regard after a careful assessment of the economic impact of the virus.
