ISLAMABAD - Pakistan had received financial assistance worth of $2.66 billion from number of countries and international organizations in the wake of the pandemic of coronavirus.

Fifteen countries and international organizations had committed to provide an amount of $3.302 billion to Pakistan as loans, grants and technical assistance in the wake of COVID-19 pandemic. Out of the total committed amount, $2.660 billion had been disbursed so far, reveals the data of Economic Affairs Division.

Pakistan had received $2.386 billion as budgetary support from different international financial institutions (IFIs). International Monetary Fund (IMF) had released $1.386 billion, Asian Development Bank (ADB) $500 million and Asian Infrastructure Investment Bank (AIIB) $500 million. However, OFID had not released the pledged amount worth of $50 million. Meanwhile, the country had received $240 million as project financing out of committed $767 million from IFIs and France. Pakistan had received $129 million from ADB out of the committed $350 million and $111 million from World Bank out of $300 million. Similarly, Pakistan had received $34.35 million as grants from different countries out of committed $99.06 million. United States had released $20.87 million, as it committed to give $31.87 million. Japan had disbursed $2.87 million out of committed $28.33 million. The ADB had released $0.5 million, China $4 million, UK $2.31 million, Canada $2.39 million, South Korea $0.8 million, IsBD $0.21 million and UN $0.4 million.   

Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh had blamed Covid-19 for a loss of over Rs3 trillion to the national income.

Pakistan’s economy faced a loss in business activities because of disruptions in trade, both in imports and exports after the outbreak of COVID-19. The major reason behind this unfortunate decline in output is the fact that the five major trading partners with more than 50 percent share in trade of Pakistan (China, USA, UK, Japan, and Germany) also happen to be the worst hit countries by the COVID-19.

Federal Board of Revenue tax collection efforts had been affected severely due to the slowdown and lockdown of the economy in the wake of COVID-19 pandemic. FBR tax collection is expected to remain at Rs 3.9 trillion during FY2020 against the target of Rs 4.8 trillion. COVID-19 pandemic had severe impacts on Pakistan’s economy.

The government had noted that for the first time since 1950 real GDP growth of Pakistan was in negative in last fiscal year. Pakistan had witnessed considerable decrease in workers’ remittances and exports.