Govt is Considering a Stimulus Package to Boost Economy

Ministry of Finance is considering a stimulus package to support the economy, Bloomberg reported on Tuesday. Finance Minister, Shaukat Tarin, is reportedly leading the initiative, which will contain monetary, fiscal, or both elements. The details of the stimulus package have not been shared so far, as it is still a work in progress, the report added. The minister also told the media that no formal proposal exists so far. Pakistan is expecting the growth rate to clock in at 3.9 percent for the fiscal year ending June 30, 2021. However, the second and third waves of the coronavirus are also expected to have dented some of this economic progress. At the same time, the government has also been trying to negotiate favorable terms with the International Monetary Fund, which allows the government to avoid increasing power tariffs or taxes. The stimulus package on the cards will likely include incentives in collaboration with the State Bank of Pakistan (SBP) and aim for the less affluent segments of the society. Pakistan has already disbursed Rs. 203 billion ($1.3 billion) in cash handouts to the poorest segment of society, while the central bank introduced multiple support packages, the news report added.