Coronavirus

Govt unveils details of Rs 1200 billion relief package

News Desk

Islamabad:The government has announced a Relief Package worth Rs 1200 billion in wake of coronavirus lockdown.

The government issued details on Wednesday.

Prime Minister Imran Khan on Tuesday announced a Rs 1,200 billion package for the economy, the largest ever stimulus in Pakistan’s history. The comprehensive package from the Government aims to mitigate the impact of the COVID 19 virus on economic activity and vulnerable segments of the society.

Fiscal Stimulus Package
Rs billion
Emergency Response 190
NDMA 25
Medical workers 50
Emergency Funds 100
Tax relief on Food & Health items 15

Relief to Citizens 570
Relief to daily wage workers 200
Relief to vulnerable families & Panagah 150
Relief on petrol /diesel 70
Funding to Utility Stores 50
Power & Gas subsidy 100

Support to Business & Economy 480
Payment to farmers (wheat) 280
Relief to Exporters 100
Relief to SMEs & Agriculture 100
Support to Capital Markets –

Total 1,240

1. Emergency Response (Rs 190 billion)
• NDMA is the central focal agency to combat the COVID 19
• Initial fund of Rs 13 billion provided for equipment and operations
• Additional funding of Rs 12 billion mobilized
• Elimination of all taxes (i.e. Customs Duty, GST, WHT) on 61 essential health machinery, equipment
• Simplification of DRAP certification and approvals process for purchase of equipment and medicines
• Rs 50 billion for providing facilities and incentives to health workers
• Emergency Fund of Rs 100 bn set up for evolving response to COVID 19

2. Relief to Citizens (Rs 570 billion)
• Cash handouts of Rs 3,000 for 12 million vulnerable households for 4 months (Rs 144 billion)
o 5 million families (existing Kifalat recipients) to get Rs 3,000 over next 4 months
o Additional 7 million families to be provided Rs 3,000 over next 4 months
 Includes 3 million families identified by BISP database
 Includes 4 million families to be identified by provincial / district administration
o Panagahs (shelters) will be allocated additional Rs 6 billion to provide food & shelter to the homeless
• Establishment of Rs 200 bn fund for most affected workers
o Detailed mechanics being developed with provinces and business
o Package for wage earners to complement provinces in their similar operations
o Incentives for industry to keep labour employed
• Deferred bill payments for power consumers (up to 300 units) and gas consumers (up to Rs 2,000 bills) for next 3 months (Rs 100 bn)
• Reduction in prices of petrol and diesel for consumers by Rs 15/ liter (Rs 70 bn)
• Additional funding of Rs 50 billion budgeted for the Utility Stores Corporation (USC) – Wheat, sugar, rice, cooking oil, pulses

3. Support to Business & Economy (Rs 480 billion)
• Wheat procurement target set at 8.25 MT
• Rs 280 bn will be distributed to farmers over next couple of weeks
• Rs 100 billion in refunds earmarked for Exporters / Industry for all refund claims to date and DLTL payments
• Monthly tax filing requirement extended to quarterly
• Suspension of mark up for business for 3 months
• Ensure continuous payments under recently announced Subsidies on power ($ 7.5 c / kwH) & gas tariffs ($ 6.5c / mmbtu) to the 5 export industries
• Rs 100 billion for SMEs / Agriculture
o Mechanism is being finalized in collaboration with SBP, business for Subsidized loans, guarantees for SME sector
• Support to Capital Markets
o CVT on capital market transactions to be eliminated
o Easing liquidity of Asset Management Companies – bank borrowing increased from 90 to 360 days
o Speculative trading (short selling) restricted in stock market

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