Coronavirus spending will not increase the size of fiscal deficit

March 16, 2020 (MLN): The government is trying to protect the well-being of its masses with the help of IMF’s rapid-disbursing financing against coronavirus.

The Special Advisor to PM, Dr Hafeez Shaikh has had informal chat with media in which he said the expenses incurring to contain the virus, would not increase the size of fiscal deficit. In order to help contagion until the emergency abates, IMF has agreed to exclude the spending which matter of fact falls under the head of the fiscal cost, said Advisor.

Talking about global markets, the advisor to PM said that nearly one trillion dollars have been lost due to coronavirus pandemic. To overcome losses due to the virus, Prime Minister Imran Khan asked to prepare the strategy for combating this crisis. PM asked to take necessary measures for the continuous supply chain of food and other products.

Regarding this, the government is seeking financial assistance from countries and other financial institutions to limit the spread and protect people and firms which are affected most.

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