Respite In Sight: Govt Considering Bringing Stimulus Package To Support Economy
Reports indicate that the finance ministry is planning to bring a stimulus package to support the economy. Led by new Finance Minister Shaukat Tarin, the initiative can can be monetary, fiscal or both, reported Bloomberg News.
Finance Minister Tarin said that the dialogue in this regard is in its initial stage yet and things remain inconclusive.
Pakistan is likely to expand 3.9% in the year ending June from a rare contraction in the previous period. The government however has concerns about a potential fresh wave of the Covid-19 pandemic affecting the projection. At the same time, the government is looking to renegotiate some terms of a bailout package with the International Monetary Fund (IMF), including raising power tariffs and some taxes, finance minister Tarin said in an interview last month.
Another person aware of the development was quoted as saying that the stimulus options include incentives in collaboration with the central bank or packages targeted at the poor.
Earlier, Pakistan distributed 203 billion rupees ($1.3 billion) in cash handouts among the poor, and the central bank released multiple support packages.