Pakistan’ economy was squeezed during spread of
Covid-19. People lose their jobs and business also. Particularly small businesses
were mostly affected. Here role of the government was admirable to control the spread
of covid and to support the economy. Government announced some
supportive schemes to give some relief to economy:
1- Deferment Scheme for Long Term Loans:
State Bank of Pakistan announced scheme for
deferment of principal portion of long term loans already availed from
Financial Institutions, by entities / business individual for the period of 1
years.
This scheme proved as a back bone for business
during Covid-19 pandemic.
2- Salaries & Wages Refinance
Scheme:
State bank of Pakistan also provide refinance
against salaries and wages paid during period of twelve months. The period of salaries
& wages loan was for 2 years with the condition that Companies will not lay
off their employees. This scheme saves jobs
of many people during hard days of Covid-19.
3- Reduction in KIBOR
Another effective initiative of government to overcome
the Covid affects Govt also decrease KIBOR rate, which supports the business entities
to continue its operations. All above relaxation given by Govt to business entities
help to maximize profits and to increase employments.
“With effective micro-lockdowns, record-high
remittance inflows and a supportive monetary policy, Pakistan’s economic growth
rebounded in FY2021,” “These measures, together with the expansion of the
Ehsaas program and support to businesses, were key to strengthening the economy
and recovering from the economic fallout associated with COVID-19”.
Najy
Benhassine,
World Bank
Country Director for Pakistan.
“The long-term decline in exports as a share of
GDP has implications for the country’s foreign exchange, jobs, and productivity
growth. Therefore, confronting core challenges that are necessary for Pakistan
to compete in global markets is an imperative for sustainable growth,”
Derek Chen,
Senior
Economist, World Bank
World Bank’s Support
During these hard days of Covid the World Bank also
helps Pakistan under program “Country Partnership Strategy for FY 2015-20”.
New Jobs Announcement:
Finance Minister of Pakistan told to Bloomberg that
government will increase the opportunities of jobs by expending $ 6 billion. Such
arrangements will increase GDP growth upto 5 percent.