SBP report highlights coronavirus impact on Pakistan’s economy  

KARACHI: State Bank of Pakistan (SBP) on Monday issued a report highlighting how coronavirus affected economic activities in the country, ARY NEWS reported.

In a series of videos posted on micro-blogging site Twitter, the country’s central bank said that COVID-19 had impacted the global economy, bringing a simultaneous negative impact on the country’s remittances.

Do you want to know how #COVID19 has affected #Pakistan so far? Check out the video to learn more: https://t.co/YMdWZl3gTj

— SBP (@StateBank_Pak) June 1, 2020

“Purchasing power of the people at local level and foreign investments have also witnessed a decline,” it said as the virus also affected business activities at local level. It said that decrease in purchasing power would lead towards affecting country’s GDP.

The SBP said that cash flow of factories and business sector remained affected due to lockdown and if it continues for a longer period than it could lead the companies towards bankruptcy.

“Bankruptcy of the companies will not only affect the banking sector’s income but also increase the unemployed ratio in the country,” it said while predicting that foreign reserves could also go down in the current situation leading to a decrease in the value of rupee against dollar.

Read More: SBP reserves fall by $55mn

The current situation will also affect the economic growth rate and budget of the country.

It said that the government has taken various measures to improve economic conditions and it had led to decrease in imports and improvement in exports.

However, the SBP report highlighted that the expenditure incurred on health sector in Pakistan amid coronavirus pandemic is far below than other countries in the region.

It said that four out of 10 people in the country are living below the poverty line.

The SBP report further highlighted an increase in country’s debts as on the contrary pressure from oil imports had eased due to low fuel prices at global level.