This is how SBP prevented unemployment during the COVID-19 pandemic.
- Governor of State Bank of Pakitan (SBP) was recently speaking at an event organized by Islamabad Policy Research Institute (IPRI)
- He explains how the State Bank of Pakistan prevented layoffs by financing wages and salaries of employees and prevented unemployment from happening at a large scale during the COVID-19 pandemic.
- The Current account and fiscal deficit of the country were discussed in detail.
“Turning Crisis into Opportunity: The State Bank of Pakistan in the time of Covid-19″
Dr. Raza Baqir shares his story of coming back to Pakistan in 2019. Before coming back to the country, he was working in IMF and he shares his expertise/experience. He explains how IMF trains you to analyze the multiple dimensions and aspects of a country’s economy.
“IMF, being the lender of last resort, has to make sure that they are comfortable before they lend” – Says Dr. Baqir
In 2019, Pakistan was still deciding whether it should go to IMF or not. “It was almost an academic question at that point”, states Dr. Raza Baqir. He explains how the decision of IMF is not merely a decision of getting the loans from IMF.
Whatever the IMF decides. will impact other financial institutions and donors. “If the lender of last resort has approved it, the rest of them will also be satisfied”
This is how Pakistan started to improve:
- The current account deficit of 19 billion dollars was converted into a surplus.
- Pakistan’s stock market has been one of the best-performing stock markets of the world.
- The construction industry started to boost
- Pakistan’s reserves were improved.
Pakistan handling COVID-19 while saving jobs:
The number of per million cases in Pakistan has been comparatively lower in Pakistan as shown by Mr Baqir in his speech.
As you can see, the strategy of Pakistan has been pretty effective and all three waves of Corona Virus were handled pretty well. Pakistan did not only manage to control the number of cases but also grew economically. According to the latest data by SBP, Pakistan has actually noticed a spike in job creation during the Pandemic.
It was the result of a “Smart lockdown strategy” and keeping the factories up and running.
For more information, please watch the full video mention above. Let us know what do you think about it.