LAHORE: Former finance minister Sartaj Aziz has called for a post-coronavirus economic revival plan focusing on short to medium term policies and budget interventions spanning over a period of one to three years to help people pushed below the poverty line because of the global health crisis, as well as to revive growth.

Speaking at a webinar organised by the Institute of Policy Reforms, Mr Aziz said the economy was already in dire straits when the virus pandemic struck. “The crisis is likely to push unemployment rate to 20pc to 30pc and significantly increase poverty. The income support for the poor and the unemployed will have to be increased to Rs300bn next year from Rs180bn allocated for the current year.”

In the budget for the next year, he suggested, the policies should focus on the jobless people and those pushed below the poverty line and growth. In his opinion, policymakers could revive growth by implementing policies to fix the country’s agriculture sector, encourage construction industry, and help SMEs and retail trade. Moreover, he was of the view that the government needed to increase its development spending to stimulate economic growth.

Mr Aziz said the government had sufficient fiscal space to increase funding for income support programme and implement a development stimulus. “The government has received significant financial assistance from multilateral lenders to fight impact of the virus. The reduced global oil prices and cut in interest rates also created additional fiscal space for government to spend more to help the poor and the economy,” he concluded.

Another speaker, Ehsan Malik, said Covid-19 provided an opportunity to revisit the economic policy and develop a national economic action plan with broad political consensus.

Published in Dawn, June 4th, 2020

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...