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Timely Actions by the Govt Mitigated Pandemic’s Impact on Economy

A meeting of the Monetary and Fiscal Policies Coordination Board, under the chairmanship of the Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, was held today.

Adviser to PM on Commerce and Investment, Abdul Razak Dawood, Deputy Chairman Planning Commission, Muhammad Jehanzeb Khan, Governor State Bank of Pakistan (SBP), Dr. Reza Baqir, Dr. Asad Zaman, and members and senior officials of the Finance Division, participated in the meeting. Chairman FBR, Javed Ghani, also attended the meeting on special invitation.


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While presenting the current economic situation, the Finance Secretary apprised that the timely actions taken by the government have mitigated the severe impact of the pandemic on the economy as compared to the other economies of the world.

The economy has witnessed a considerable recovery during the first five months of FY2021 as a result of continued domestic economic activity.

Governor SBP briefed that Monetary Policy is accommodative due to COVID-19 and has paved the way for economic recovery during the first quarter of FY2020-21. There is an improvement in the country’s external accounts. The steady worker remittance inflows and improved trade balance of goods and services were the notable developments, he added.

In his remarks, the Deputy Chairman Planning Commission stated that the first two-quarters of FY21 have seen a rebound in economic activities amid COVID-19. He said that economic recovery can be attributed to accommodative fiscal policy.

He further stated that Large Scale Manufacturing and Housing Sectors have started showing signs of growth and improvement.


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The Adviser for Commerce and Investment mentioned that during July-November FY2021, Pakistan’s trade deficit registered modest improvement as exports increased by 2 percent (Year-on-Year) growth, while imports remained stagnant.

He reiterated that the fiscal policy reforms undertaken under the National Tariff Policy must continue. Adviser Commerce also added that domestic industry, especially export-oriented, may be provided needed support to expand their operations.

Similarly, the inflationary pressures must be kept in check to ensure competitiveness.

Dr. Asad Zaman appreciated the timely fiscal and monetary measures taken by the government during challenging times. He further mentioned that comprehensive data analysis is key to rational decision making.

The Finance Minister emphasized the active role of the Monetary and Fiscal Policies Coordination Board for designing policies to address economic challenges. He directed to make this platform more effective for achieving better coordination among all concerned to attain desired macroeconomic goals.


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He also stressed the need for the timely provision of economic data for effective policymaking. He said that the board should be proactive in reviewing the impact of Fiscal and Monetary Policies on economic growth, employment, investment, and the external sector of the economy.

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