Federal govt to stop recruitment for next two years
The exponential surge in the coronavirus has shattered the global economy including that of Pakistan. Pakistan has been already facing tumultuous economic conundrum since last two years and it can not afford expenditures of the public sector. The World Health Organisation and the World Bank has already warned Pakistan to face severe economic crisis after the covid-19.
Considering the prevalent situation, the federal government has initiated taking certain necessary measures to avoid harsh economic crisis to Pakistan economy. In this regard, the federal government has decided to cut its expenditures of public sector which it has decided o bar the recruitment by the federal government.
Dr Khaqan Najeeb, an adviser to the Ministry of Finance, said that room for savings in the upcoming budget has been created in interest payments of the government due to the reduction in the policy rate.
“A part of the Public Sector Development Programme (PSDP) can be financed through Public-Private Partnerships as well as creating money through asset recycling. Slowing growth in salaries and pensions can also help manage lower expenditures in the budget,” he said.
— Dr. Khaqan Hassan Najeeb (@KhaqanNajeeb) May 10, 2020
He managed to say that Rs. 421 million will be saved to the national exchequer in the lieu of retirement and halting the new employment by the federal government.
World Bank latest report about economy of Pakistan
South Asian countries are already facing the tumultuous state of economy posing low economic growth for last half century. Amidst the outbreak of coronavirus globally, the region may face worst economic performance, said the world bank report in April.
The latest report by the World Bank says that Pakistan, Afghanistan, and Maldives may fall into recession due to covid-19. The world bank further added that Pakistan is more vulnerable to the recession due to increased population growth of 1.8 percent which would debilitate the economic growth of the country. The report has also cited that Bangladesh, Pakistan, and Afghanistan are the densely populated countries due to which they can be next prey to the on going coronavirus in Pakistan. Combine thee three nations have 1.8 billion population which is vulnerable to the covid-19.
National and international organizations assessments about the damage to Pakistan’s economy due to the Coronavirus.
The Asian Development Bank (ADB) in its report estimates the loss as the virus spreads to Pakistan’s economy from $ 16.387 million to $ 4.95 billion, or 0.01 percent to 1.57 percent of gross domestic product (GDP).