ISLAMABAD: Coronavirus crisis to have devastating effects on Pakistanieconomy in FY 2020, the economic experts of Pakistan have warned.
Experts expressed fear of the rise in current account deficit up to 9.6 percent and fall of growth rate to -1.57 per cent amid coronavirus crisis.Ad
Adviser to Prime Minister on Finance, Abdul Hafeez Shaikh, has chaired ahigh-level session to review the coronavirus impacts on the nationaleconomy. The participants of the session unanimously expressed fear ofnegative impacts of coronavirus on regional and global economies, as wellas the low financial indicators in Pakistan.
During a briefing, Abdul Hafeez Shaikh was told that the current accountdeficit could be increased up to 9.6, whereas, the growth rate went down to-1.57 as unemployment rate spiked due to a halt in businesses andproduction units amid ongoing nation-wide lockdown.
Elaborating the disaster of COVID-19, the economic experts estimated for atleast 3.0 per cent reduction in the global economy which could not berecovered before 2021.
It is recommended to reopen the construction sector besides the resumptionof industrial activities to retain the employment rate. The finance adviserwas also told that there is a need to reset and reboot the nationaleconomy. The latest session was also attended by the representatives of theWorld Bank (WB), Asian Development Bank (ADB) and other internationalfinancial institutions.
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Earlier on April 25, Abdul Hafeez Shaikh had chaired a meeting of thinktankon economic affairs to discuss coronavirus impact on economylink andefforts needed to mitigate its risks.
The participants stressed upon the need to bring reforms in the monetary,banking and financial affairs and small and medium enterprises (SME)sector. The meeting also emphasized the need to bring improvement in largescale businesses, social safety net, health sector and private sector.
The adviser had also briefed the participants on the debt relief planapproved at the G-20 forum. He said that under the plan, United StatesDollar (USD) 1.80 billion debt payment could be postponed for a year.
