BANK Pakistan has been unable to deal with the coronavirus. It was late in implementing safety measures and its lockdown policy did not work as then people did not have enough money to buy basic necessities. Pakistan’s health facilities are so poor that they are unable to take care of its corona infected population.
The rate of spread is very fast and the implementation of safety measures is so bad that they seem non-existent. The Pakistani BANK government is running on debt and the situation seems dire.
Pakistan’s GDP last year was approximately $320 billion. Its public debt to GDP ratio has increased from 85% to 90% due to the poor BANK performance of its Federal Board of Revenue and implications due to the COVID-19 outbreak.
This shows how poor the conditions are in Pakistan, BANK the government has been heavily criticized by the public for its poor decisions. The World Bank has approved a US$500 million programme to help Pakistan support its healthcare, education and support economic activities so it can become self-sufficient BANK and improve its safety measures to limit the impact of COVItD-19. This
$500 million was given to Pakistan under the Securing Human Investments to Foster
Transformation (SHIFT) programme which aims at strengthening safety nets in the country to help those infected by COVID-19.
The World Bank had previously suspended Pakistan’s budget BANK support loans in 2017 due to its
rapid decline in GDP caused by the deterioration of macroeconomic factors. It is due to the COVID-19 that to ensure global safety that the World Bank approved this loan which will be financed by its concessionary arm-“ The International BANK Development Association”.
Pakistan will repay this loan in 30 years, the BANK loan has a lot of conditions attached to it. Along
with using the money only for what it has been lent for, another condition is to restructure its
Debt BANK Policy Coordination office into a single Debt BANK Management office. The existing debt office was set up under the Fiscal Responsibility and Debt Limitation Act whose role was restricted to coordination and advising BANK the government. The new structure will give the Debt Management Office more power and help the government make decisions to reduce their debt.
Due to the COVID-19, Pakistan’s economy is on the verge of collapse and the World Bank along
with the International Monetary Fund and Asian Development BANK Bank has declared that it will give its full support to those in need to survive through these dire times.