Covid strategy to boost confidence of expats
Even as the UAE has lifted suspensions on return of Pakistan expats, thousands of Pakistanis still remain stranded due to the non-availability of rapid antigen test facilities at the local airports. PHOTO: FILE
Successful containment of multiple Covid waves, preservation of Pakistan’s macroeconomic fundamentals amid Covid shock and proactive policy response from the government and central bank to support the economy should give confidence to the overseas Pakistanis, said the State Bank of Pakistan (SBP) governor.
Reza Baqir was speaking at an interactive session titled “Roshan Digital Account – an initiative of State Bank of Pakistan” on Sunday.
He pointed out that Pakistan had managed to reduce the public debt-to-GDP ratio and more than doubled the foreign exchange reserves during the pandemic. Terming Covid the biggest catastrophe for the world after the World War-II, Baqir noted that with high population density and under-developed healthcare system, the malady could have devastated Pakistan.
He particularly highlighted the critical role played by the Ehsaas cash transfer programme, which had been recognised globally for its unprecedented coverage of the vulnerable population.
Talking about the role of central bank in helping the economy manage the fallout from the global catastrophe, he said that a number of historic measures were rolled out in a record time, which were equivalent to around 5% of country’s GDP. The measures helped provide relief to households and companies, he said. “As a result, Pakistan’s economy shrank just 1% in 2020, which was a much better outcome compared to most countries around the world.”
Discussing the economic outlook, he termed inflation and the current account deficit the biggest challenges and expressed confidence that the country would weather them in future. The SBP governor stressed that the two problems would be resolved through forceful and timely actions, taken by the government and State Bank over the past few months, aimed at moderating domestic demand.
He stated that the Roshan Digital Account (RDA) initiative proved to be great success for the overseas Pakistanis in Saudi Arabia as the expatriates there opened the highest number of RDAs.
“Pakistanis in the kingdom also made the second highest deposits among 175 countries where the RDA facility is offered,” he said. Speaking on the occasion, Ambassador of Pakistan to Saudi Arabia Bilal Akbar said that despite the challenges posed by Covid-19, remittances from Saudi Arabia to Pakistan and trade and economic relations between the two nations expanded.
He appreciated the RDA initiative and underlined that it would not only help the overseas Pakistanis in channelling their income to secure investments but would also provide the much-needed financial independence to their families in Pakistan.
Published in The Express Tribune, February 8th, 2022.
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