Search for new resources for government spending on viruses

Search for new resources for government spending on viruses

ISLAMABAD: Where the government began seeking grants and assistance to deal with the threat posed by the Coronavirus (COV-19), the International Monetary Fund on Monday Didn't agree to consider spent on deadly viruses out of deficit targets.

Sources with information said that the government has contacted relevant UN agencies and the World Bank for grants and urgent assistance.

At the same time, the government is considering the option of turning to the International Monetary Fund (IMF) and the World Bank for special funds for the global fight against the Coronavirus.

However, the senior government official explained that no formal application has been made so far to benefit from the $ 50 billion IMF fund or $ 10 billion World Bank loan.

When contacted, Finance Ministry spokesman Omar Hameed Khan confirmed that talks with the World Bank about US $ 20-25 crore from the Emergency Response window as beneficiary loans under International Development Assistance (IDA). The conversation has already taken place.

He hoped that the bank's board of directors would immediately approve the aid within a week for spending.

Pakistan Bank is eligible for a loan of about $ 100 million from the initial response window, while $ 15 to $ 16 crore will be provided from other project surpluses.

To meet the needs of health agencies and the National Disaster Management Authority, the government will release about Rs. 8 crores on Tuesday, after which a further approval of Rs. 30 crores will be made in the next few days.

In addition, the government is also considering providing around 5 billion rupees in the federal budget to cover any unexpected expenses.

It is against this backdrop that Advisor Finance Dr Abdul Hafeez Shaikh told the media on Monday that the IMF had agreed that the money spent on fighting Covid-19 against the limits of the fiscal deficit. Will not be considered.

He said that the Prime Minister had entrusted him with developing a strategy to tackle the economic impact of the deadly virus.

"A strategy will be developed that does not affect economic activity and will try to ensure that consumers do not face food shortages and their prices will not rise," he said.

He added that efforts are also being made to prevent unemployment risk due to quotient 19 and that farmers are getting a fair price for their produce.

"Under pressure, the government will try to secure expansion of contracts if exports are at risk," he said.

In response to a question, he said that Pakistan's stock market has declined by 10 to 11 percent while global markets have lost about 10 trillion dollars.

He added that the government would seek financial and technical assistance from various countries and international lending agencies to curb the spread of the Coronavirus.

Dr Abdul Hafeez Shaikh presided over a meeting to review the progress made in the major sectors of the economy.

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Coronavirus in pakistan

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