KARACHI, Pakistan: While giving an aggressive economic response to the COVID-19 pandemic, Pakistan had one of the smallest increases in the public debt globally which has supported the market sentiment.
In a statement on Monday, the State Bank of Pakistan (SBP) has said that Pakistan’s Fiscal Year (FY) 2021 growth is expected to rise to 3.94 percent, as the post-COVID recovery underway since last summer has strengthened.
The SBP said that the nine-month current account is also in surplus for the first time in 17 years and the Foreign Exchange reserves are at 4 years high. It said that this rebound was fueled by a well-calibrated policy response.
The State Bank said that given the high public debt, the fiscal support was targeted to the most vulnerable, notably through the globally-acclaimed Ehsaas program.
At the same time, the public debt and deficit were kept under check which has supported market sentiment, investment outlook, and economic recovery, it said.
The State Bank of Pakistan said that it provided a targeted economic stimulus of Rs 2 trillion to support the recovery through an interest rate cut, principal deferment & loan restructuring, Rozgar payroll finance scheme to prevent layoffs, and concessional finance for investment in industry and health facilities.
