FCCI concerned over loss of Rs1.3trn to Pak economy due to COVID-19
FAISALABAD: Research and Development Committee of the Faisalabad Chamber of Commerce & Industry (FCCI) has observed with serious concern that Pakistan economy may incur initial economic loss of Rs.1.3 trillion due to COVID 19.
Addressing a video link meeting on Monday, Engineer Ahmad Hassan, Chairman FCCI Standing Committee on R&D told that according to Planning Commission of Pakistan the estimated size of Pakistan’s economy is around Rs.44 trillion and loss due to corona virus is expected around 10 percent during the last quarter FY 2019-20 (April-June, 2020).
He emphasized that Pakistan’s financing needs have been projected around 51.2% of the GDP in 2020 by the International Monetary Fund. He said that it is point of serious concern that one million SMEs will be closed down while 18 million people will also lose their jobs in Pakistan due to COVID 19 Lockdown. He said that worst effect will be faced by the daily wagers as 47% work force is engaged in service sector including marriage halls, hotel industry and other allied sectors etc.
Continuing Engineer Ahmad Hassan said that as IMF/World Bank has frozen the payment of debts for Pakistan due to COVID 19 situation for one year. “These funds may be utilized to establish large scale employments under Public Private Partnership”, he said and added that in this connection private sector should be invited for the project proposals and selected projects may be financed under PPP.
“It will create large scale permanent employment opportunities in this country”, he added and said that serious efforts should also be made for promoting uninterrupted services to the business activities for smooth operation. He mentioned huge potential of agriculture sector and said that it should be exploited not only in the shape of per acre yield but also through farm mechanization and support price etc.
Quoting a recent estimate of UN, he told that tourism will drop up to 80 percent globally resulting into huge losses to the tune of US$ 50 billion. “It will also have a trickledown effect on Pakistan and the efforts initiated by the Prime Minister Imran Khan to promote tourism in Pakistan will also go to drain. He said that Government must give relief package for this sector so that it could play its dynamic role immediately after the Corona Lockdown.