Pakistan approves Rs 1200-bn relief package as coronavirus cases rise

Pakistan's Cabinet on Tuesday approved a Rs 1,200-billion relief package to deal with the growing coronavirus crisis in the country as COVID-19 cases rose sharply, claiming the lives of 25 people and infecting nearly 1,900.

The package was unveiled by Prime Minister Imran Khan last week and it was formalised on Monday by the Economic Coordination Committee (ECC) in its meeting, chaired by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Sheikh.

Prime Minister Khan chaired the Cabinet meeting which granted approval to the relief package on Tuesday, his Advisor on Information Firdous Ashiq Aawan told the media.

The Cabinet unanimously approved Rs 1,200-billion coronavirus relief package with the commitment that it help to defeat the virus, said Awan.

According to a notification by the government, a Rs 100 billion emergency fund was set up to deal with the impact of the pandemic. It was also agreed to provide 20.2 million people Rs 12,000 on a monthly basis for four months via the 'Ehsaas Kifalat Programme'.

The government has allocated Rs 200 billion for daily wage earners and labourers. The Federal Bureau of Revenue was tasked to issue Rs 75 billion in tax refunds.

As per the package, the two per cent tax on import of pulses has been abolished and the withholding tax rate on spices, dry milk and salt supplies has been set at 1.5 per cent for utility stores.

The ECC approved Rs 30 billion for textile exporters as payment of duty drawbacks. A Rs 6 billion grant was approved for the Pakistan Railways. Another Rs 50 billion was set aside for procurement of medical supplies.

A hefty Rs 280 billion was allocated for procurement of wheat to stock it for use in future. Another Rs 25 billion was allocated to be used by the disaster management body which is leading effort to provide medical supplies.

The package was announced by Khan last week and also included reduction of Rs 15 per liter in the prices of patrol in the country. The State Bank of Pakistan (SBP) also lowered interest rates to facilitate the businesses.

Lately, the SBP also asked the banks to provide relief in debt to individuals and companies to help them to defer payment of interest on the principal amount for one year.

Khan said in his address to the nation on Monday that that the total package was worth USD 8 billion which he conceded was far low as compared to other countries.

Officials in Pakistan were scrambling to contain the disease by appealing to the public to remain inside homes and go out only in cases of emergencies.

So far 25 people have died of the disease, while 52 recovered. Another 12 were in critical condition at various hospitals. The number of cases reached 1,876.