Corona caused loss of Rs.3,000 billions to Pakistan Economy

National income expected 3% but the growth rate has a negative 0.4%

No new tax will be imposed in the new budget, the budget will provide relief to the people. Media Briefing on Financial Advisor
Hafeez Sheikh's Economic Survey 2019-20

ISLAMABAD: Federal Adviser on Finance Hafeez Sheikh has said that Corona has caused a loss of Rs 3,000 billion to the Pakistani economy. No new tax will be imposed, the budget will provide relief to the people. He told a media briefing on the Economic Survey 2019-20 that the current government had inherited the crisis.

Presenting the Pakistan Economic Survey 2019 at a press conference on Thursday - a day before the announcement of the federal budget for the fiscal year 2020-21 - the adviser gave a large part of his speech building statement to inherit the troubled economy. Spent The world and Pakistan are on the path to rehabilitation before the epidemic of COVID 19.

The data shows that not only did most of the economic sectors actually shrink, but a few people in the positive zone also missed their targets. Although Dr. Sheikh presented a brave face to face the economic crisis next year, he was equally uncertain about the modality of recovery or how long the economic loss, poverty rate or unemployment rate could last.

Our expenses exceeded our income. Were going bankrupt two years ago. We reduced the fiscal deficit by 73%. 5,000 billion in debt of the previous government. Under the guidance of the Prime Minister, the policy of spending reduction was successful. For the first time, a balanced policy balances spending and revenue.

For the first time, no loan was taken from the State Bank of Pakistan for the whole year.
No funds have been released to any ministry in the form of supplementary grants. The freezing of the defense budget by the Pakistani forces was also an important step. He said that the reduction in imports also reduced revenue collection. A weaker dollar boosted exports. The government gave concessions to the business sector out of its own pocket. Despite the financial difficulties, ample funds were allocated for the Ehsas program.

Doubling the budget of Ehsas program, these budgets have been increased to 192 billion. This money is kept for the common man, this money is being given to the common man by non-political, religious discrimination. An estimated Rs 250 billion has been earmarked for the private sector, he said, adding that the coronavirus has gripped the entire world since its inception.

Developing countries will be among the countries most affected by Corona. It is too early to say anything about Corona. It is not possible to say definitively when the epidemic will end, but it will be estimated in the next 30 days.

The IMF predicts that world income will fall by 3 to 4 percent. Corona has affected financial stability in Pakistan. It is estimated that Corona has caused a loss of Rs 3,000 billion to the Pakistani economy. Before Corona's arrival, the revenue increased by 17%. But our income from Corona, which was supposed to increase by 3%, has now declined by 0.4% of the national income, ie the economic growth rate has become negative by 0.4%.

At the top, the adviser said the FBR's revenue is likely to reach Rs 4.7.7 before the Code 19 crisis, but now it will hardly be Rs 3.9.09. He said that the loss of about Rs. Therefore, Zarb-e-Azb is guaranteed so that they can better support the struggling economy.

Our experts have been affected. If it were not for Corona, FBR tax collections could have reached Rs 4,700 billion, but it has lost Rs 850 billion. Now, FBR taxes will fetch Rs 3,900 billion. In this environment, we do not want to tighten the grip on citizens to collect taxes.
A two-pronged package was announced to save Corona. A package of Rs 1,240 billion was given, on the other hand, subsidies were given to the SBP, and programs were implemented to provide relief to businessmen and companies.

He said that the fiscal deficit was overcome this year, the fiscal deficit was 4% from July to March this year, while the deficit was 5.1% in the same period last year. Efforts are being made to give concessions to the people in the new budget.
No new taxes will be imposed on the new budget. Hafeez Sheikh said that 90% tax was reduced for New Pakistan Housing, Rs 30 billion was allocated for low-income housing, we set aside Rs 29 billion for affordable housing, and tax exemption was given.

Corona caused loss of Rs.3,000 billions to Pakistan Economy

The construction sector has been given complete relief. He said that the growth of the agriculture sector was 2.67 percent and wheat worth Rs. 280 billion was procured from farmers. Forgive 3 months electricity bill for small factories. Industrial growth was negative at 2.64 percent. The output of small industries stood at 1.5 percent as against 8.2 percent. The growth rate in the minerals sector was negative at 8.8 percent. Growth in the transport sector was negative at 7.1 percent.

Growth in the communications and services sectors has also been negative. The services sector grew by 0.6 percent against the target of 4.8 percent. Electricity production and gas distribution were 17.7 percent against the target of 1.5 percent. The ratio of National Savings Schemes was 13.9% against the target of 12.8%

However, still, the country has the potential to overcome this loss by providing relief to industry and agriculture personnel we can again build our economy and there will be a positive impact on the stock exchange after the corona will end

The volume of the economy stood at Rs 38,878 billion instead of Rs 40,588 billion, accounting for 15.4 percent of GDP. During the current financial year, inflation stood at 9.1 percent instead of 8.5 percent. The per capita income was 214,000 against the target of 224,000.

                                    #Pakistan Economy


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