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Investor Presentaiton

Chapter VII - Impacts of COVID-19: Fiscal Pressures and Healthcare Deficit Response by Provincial Government Punjab has a dominant role in the performance and development of the national economy. The Province contributes 55 percent to the national income, employs 61 percent of the total employed in the country and houses 53 percent of the total population. At this scale, it is apt to say that, "Pakistan grows if Punjab grows." The converse, however, holds even strongly, and a dip in Punjab's economy is likely to have a greater impact at the national level. Therefore, sustaining Punjab's economy under the existing Health and resulting economic emergency is crucial to resurrect the national economy. So far, some estimates have been developed on the size of economic and employment loss for Punjab. The existing estimates show an economic loss to Punjab to the tune of USD3-5 billion and short-term employment loss of 4 to 6 million. The immediate response to these shocks will be focusing more on Social Protection to protect the most vulnerable and to ensure that the food and essential goods supply chains continue to stay operational. It is inevitable that some of the businesses will not be able to sustain this shock and will be closed permanently or will have to be reopened with an entirely different business plan. To date, the impact of COVID-19 has been lower in rural areas and the Agriculture sector seems to be broadly stable. However, the Agriculture sector is dependent on a variety of inputs and effective logistics and market operations. It is important that support to this sector is managed, as it employs 14.5 million people and is a food line to the entire Province. The Government of Punjab in the middle of March 2020 declared a Health Emergency and enforced a complete lockdown throughout Punjab from 23rd of March 2020. On the directions of the Government, P&D Board immediately set up a Steering Committee under Minister Finance which tasked three working groups for (i) Health Emergency; (ii) Social Protection and; (iii) Economic Support to develop immediate interventions in response. Government of Punjab allocated Rs. 25 Billion for reäefivities funds amounting Rs.25illion. Rs. 6.739 Billion Primary & Secondary Health Rs. 5.173 Billion Specialized Healthcare and Medical Education Rs. 13.100 Billion Punjab Disaster Management Authority/District Administrations/Punjab Social Protection Authority The three Working Groups worked on a tight deadline and recommendations under all three areas were submitted to the Chief Minister. These recommendations were approved by Government and the concerned departments took emergency steps to achieve the defined objectives of prevent and disaster relief along with financial support to Effected classes. For efficient execution of emergency relief activities funds amounting PKR25 billion have been allocated. The efforts, however, are still ongoing and require further support in fight against the disease and its destructive impacts on the economy/society. Tax Relief Apart from above direct spending on relief and recovery, the Government took other initiatives to help support the economy and the fiscal base of the Province and provided relief in various Provincial Taxes of PKR18.0 billion. 費 % </> Stamp Duty reduced to 1% in Urban Areas UIPT waived for last quarter Electricity Duty suspended PSTS suspended for 20 plus sectors PIDC suspended Professional Tax waived Rs. 1.0 Billion Rs.10 Billion Rs. 3.1 Billion Rs. 2.3 Billion Rs. 1.4 Billion Rs. 0.2 Billion Page 63
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