Coronavirs bring down Pakistan’s GDP to negative 0.38% in FY 2020

Islamabad – Adviser to the Prime Minister on Finance and Revenue, Drs. Abdul Hafeez Sheikh said on Thursday that the country’s economy was stagnating before the outbreak of the Coronavirus epidemic (COVID-19), causing huge losses and leading to negative growth of 0.38 percent.

Addressing the inauguration ceremony of the Pakistan Economic Survey for the outgoing fiscal year 2019-20, the consultant said that before fiscal year 2020, before the outbreak of coronovirus, the government’s dedicated efforts to address structural issues in FY 2018 Macroeconomic imbalances were born. .

He said that the economic reform program and implementation were also accepted by international financial institutions, while the International Monetary Fund (IMF) announced that Pakistan’s program was on track and bearing fruits of the economy.

He added that the pre-COVID-19 economic recovery was also supported by macroeconomic indicators as an outlier, declining current account deficit, creation of foreign reserves and stable exchange rates.

On the financial side, all key indicators improved significantly and the trend continued until March 2020, implying that fiscal consolidation is on track.

A significant change in the primary balance was seen as it posted a surplus of Rs 193.5 billion during July-March FY 2020 as against a loss of Rs 463 billion in the previous year.

He said that the government had repaid a loan of about 5,000 billion rupees and succeeded in reducing its spending, while no ministry or department was given a supplementary grant.

During this period, he said, the government did not borrow even a single penny from the State Bank of Pakistan in this period. Apart from this, a significant increase of 17 percent was also observed in revenue while non-tax revenue also increased significantly.

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