Pakistan is expected to record a loss of over PKR628bn ($4bn) by the end of the current financial year, which is 30 June 2020, as a result of the adverse impact of the coronavirus pandemic on the economy, according to a report prepared by the sub-committee of the National Coordination Committee (NCC).
The report “COVID-19: Preliminary Macroeconomic and Socioeconomic Assessment” said almost all the sectors of the country would suffer a loss due to lack of human and business activity, reported Pakistan Today.
Giving a breakdown of the losses, the report said the Aviation Division will face an estimated financial loss of PKR13.6bn; the Pakistan Stock Exchange PKR250bn; Petroleum Division PKR87bn; Ministry of Energy (Power Division) PKR136bn; Pakistan Railways over PKR7bn; National Food Security PKR55bn; Overseas Pakistanis over PKR76bn; Ministry of Information Technology PKR1-5bn under the head of withholding tax; and Maritime Affairs will report a loss of PKR30m.
It added that the Federal Board of Revenue would face a total estimated revenue shortfall of PKR600bn in the last three months of the current financial year.
The report also suggested the way forward to deal with losses, saying some measures have already been taken, such as financial support for industrial units subject to an undertaking that no worker will be laid off during the stipulated period.
The report also said that continuity of insurance services is be ensured by including it as an essential service by provincial and federal governments during lockdowns. It floated the utilisation of online platforms for premium payments, claims handling and disbursements, policy document delivery and other operational aspects of insurance, as well as grace periods for the payment of renewal premiums.