impact on the global economy in about The current account deficit turned into a century since the Great Depression a surplus for the first six months of the than COVID-19.1 Pakistan has by and year – largely on the back of increasing large evaded the pandemic’s worst remittances and low oil prices – and fallout as the disease has had a varying revenue growth also improved. [...] Asad Sayeed serves as Director at the Collective of Social Science Research, and has 1 The IMF declared the economic downturn due been part of numerous policy related forums to the Covid-19 pandemic to be the worst since instituted by the Planning Commission, the Great Depression. [...] Subsequently, we critically appraise the policy instruments a) Inability to Allocate Resources to used by the government in the midst of Productive Sectors and Firms: During the pandemic on the benchmark of their the last forty years, cotton textiles impact on growth, stabilisation and on and related products, food alleviating the stress that the poor and processing, cement and vulnerable have bee. [...] includes a reduction in the policy interest rate, liquidity support for the The only growth initiative – which payroll for formal sector manufacturing, contained both fiscal and monetary interest rate subsidy for capital elements – introduced by the investment, and a credit line for the government was for the housing and housing and construction sector. [...] They increase well-designed and appropriately targeted economic growth through the multiplier BISP/Ehsaas programme in the short to and Marginal Propensity to Consume medium term, thereby injecting the effects.9 Economic growth will increase necessary economic stimulus from the the size of the economic pie, and enlarge fiscal side.
- Pages
- 10
- Published in
- Pakistan
