IMPACT OF COVID 19 ON PAKISTAN's ECONOMY
Pakistan’s economy is in dire need of a special economic policy to help to mitigate the impacts of the global economic crisis due to the COVID-19 pandemic, suggested the chairman of the parliamentary standing committee on finance during the meeting of parliamentarians as a resource-based paper.
Similarly, a pension scheme should be extended to the eligible population to ensure the viability of the masses; he said and added that to ensure the facilitation of the people, and stamp duty should be reduced by Rs20 per unit to ensure the facilitation of the ordinary citizens.
On the Senate point of order, Chairman Standing Committee expressed his reservations about the over-reporting of the Federal Board of Revenue (FBR) on 10,000 Chinese deals by Prime Minister Imran Khan during his visit to China in November 2019 and alleged that the establishment is seeking Nepotisation of the Pakistanis.
PM should reveal his reason for stalling the Pakistan-China Economic Corridor (PCEC) project and ensure to grant FBR required powers to ascertain the illegality and set up a special commission to trace the corruption worth of billions of dollars with return money to the public, he said and noted that a new census should be held to restore the loss of value of a million companies’ assets due to reorganization due to the coronavirus crisis.
Talking on the Senate point of order, Pakistan Democratic Movement (PDM) chief Senator Raja Zafar-ul-Haq said the PTI government including rulers of Sindh, Baluchistan, and Khyber Pakhtunkhwa (KP) are not taking any initiatives for relief to the people and their only concern is to stifle the opposition.
The House is not a forum for debate and no one should assume legislative power in the house, he said and remarked that the democracy should give priority to the resolution of matters as they are in the passing stage.
The main reason behind the deep divisions in the country is leader did not want to take any measures to cut down the excess spending. Moreover, the PPP and PML-N are not giving acceptance.”
The Senate also observed the Senate meeting via video conference after the PM abruptly addressed the joint sitting of the parliament on coronavirus crisis and then gone to China, while the Senate Chairman called for legislation to address the reported issue of government failure to offer its input in the Simla Agreement signed during the era of PML-N and arranged by Pakistan in 1974 and extended by the federal government of Prime Minister Altaf Hussain.
The Senate highlighted that successive governments have failed to propose and implement the first and second OIC Summit Decision, 2001, to promote the mutual cooperation between Pakistan and OIC countries, despite the fact that by the extension of the Paris and Ankara Surplus Arrangements, through Jan 31, 2010, Pakistan was obliged to:
#Continue to guarantee its solid support to social development and community welfare programs through local and international organizations on an annual basis;
# Investigate, through the Ministry of Planning, Development and Special Initiatives, into whether the non-payment of current and pensions is true;
# Investigate the non-payment of salaries to the employees of the Federal Government of Pakistan (2%) and Employees Provident Fund Scheme (5% and 7.5%), and determine the complete duration of non-payment of salaries and pensions to the Employees at the national and provincial level, as well as the sources of this non-payment of salaries and pensions;
# Monitor the non-payment of salaries and pensions of employees, National Industrial and Commercial Employees Welfare Fund (12%), Irrigation Board (15%), Communications Board (30%), National Database and Registration Authority (3%), Tehsil Secretariat of the Forest Department of Pakistan (15%), and the National Training University of Fisheries and Game Fish (5%), during 2019-20 to determine the reasons and full financial consequences thereof.
The Pakistan Democratic Movement (PDM) demands putting forth a resolution with reference to Pakistan’s repressed population and politicians, who are residing abroad as well as in exile, to immediately return to their constituencies for empowering voters and removing economic hurdles for the facilitation of every possible segment of the country.
Conclusion
Corona has affected many sectors such as agriculture, industry, and business. The condition of the crops has deteriorated due to lack of rain, and this year's monsoon season has been delayed as well.
The agriculture sector contributes around 23% to Pakistan's gross domestic product (GDP). According to reports, though it employs more than 45 million people across the country, yet agriculture remains one of the least developed sectors in Pakistan.
It is a well-established fact that the capital structure in Pakistan is highly inequitable. The richest 1% of the population possesses a whopping 57% of the national income. In contrast, the bottom 60% of the population has access to only 22% of national income. There are two principal reasons for this dismal state of affairs: inequality in ownership and unequal distribution of income from capital assets.
The country's economy is also facing a major challenge because of the International Monetary Fund (IMF) conditionality. The government is under pressure due to three options either to increase taxes, cut expenditures or take loans from friendly countries. IMF has also made it clear that the country would have to adjust its economic policies with those of the Fund in order to get fresh loans after completing its previous loan package.
The devastating impacts of Corona reached their peak in Pakistan, where more than 80% of the total cotton production was destroyed. Thus, the government had to spend $2 billion to import cotton from other countries such as Australia and Uzbekistan. The cost of living and inflation has significantly increased in Pakistan because of this disease.
Corona is one of the major causes of the economic crisis in Pakistan. The main objective of this report is to study the impact of corona on the economy of Pakistan. This report also aims to provide recommendations for minimizing losses caused by corona which can be taken up by policymakers and leaders.
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