Govt seeks IMF's help to insulate economy from corona virus.

ISLAMABAD -- Pakistan has approached the International Monetary Fund (IMF) with a request of $1.4 billion to mitigate the economic fallout of the corona virus pandemic, Prime Minister's Finance Adviser Hafeez Shaikh said on Wednesday.

Addressing a press conference, he said this sum is separate from the current $6bn programme and that the World Bank will also provide $1bn to the country to support its efforts against the corona pandemic. He was accompanied by PM's Adviser on Commerce Razak Dawood, Federal Minister for Economic Affairs Hammad Azhar, PM's media aide Firdous Ashiq Awan, PM's Special Assistant on Petroleum Nadeem Babar and others.

According to the PM's aide, the economy was on the path of the recovery; however, after the pandemic, the government was expecting a slowdown in the economic activity throughout the country.

Giving reasons for the slowdown, he said: 'Demand for Pakistan's exports will fall as the economies of the countries that it exports to are weakened; remittances from expatriates will be affected as countries where they are based, such as Saudi Arabia and the UAE, are weakened; economic activity to be reduced which will in turn reduce people's income and taxes.'

To keep the economy from crashing, the government has already announced a Rs1.2 trillion relief package, he said, adding that 'we have to save our own people first'.He said that the corona virus pandemic has put the economy on a challenging path: it would not only affect the exports but would slow down domestic economic activities and thereby reduce tax collection.

Shaikh said that out of the total Rs1.25tr, Rs200bn would be spent on daily wagers and labourers: the government would provide Rs3,000 per month to the workers in coordination with the business community and provincial governments.

The adviser said that the package also included Rs100bnfor industry and exporters which would be spent to resolve liquidity issues of the business community, such as payment of refunds and deferment in interest on principal amounts.

For the agricultural and Small and Medium Enterprises (SME) sectors, Rs100bn would be spent for deferment of loans, concessional loans, and underwriting by the government for creditor subsidy, he said, adding fertilisers would also be subsidised to facilitate farmers.

Shaikh said that Rs1450bn would be spent to provide relief to around 12 million vulnerable people by providing...