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Pakistan
Government and institution measures in response to COVID-19.
Government and institution measures in response to COVID-19.
Return to homepage | Last updated: 24 June, 2020
General Information
On 03 April 2020 The Government of Pakistan (GoP) announced a special incentive package for construction industry
On 30 March 2020 GoP has approved the fiscal stimulus package of Rs. 1.2 trillion and Supplementary Grant of Rs. 100 billion for the "Residual/Emergency Relief Fund" in relation to provision of funds for mitigating the affect of COVID-19 for the impacted population.
Tax measures – Direct and Indirect
(e.g. payment deferrals, rate reductions…)
Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.
Economic stimulus measures
(e.g. loans, moratorium on debt repayments…)
- 04 April 2020 The Securities and Exchange Commission of Pakistan (SECP) on Wednesday allowed all lending Non-Bank Finance Companies (NBFCs) including Non-Bank Microfinance Companies (NBMFCs) to defer repayment of principal loans by their borrowers for one year, under the present circumstances owing to the outbreak of COVID-19 (coronavirus) pandemic.
- 01 April 2020 The federal cabinet approved launching domestic Sukuk bond for generating Rs700 billion for financing the escalating budget deficit and meeting the increasing financial requirements for combating COVID-19
- 29 March 2020 Central Bank has relaxed the DBR for consumer loans from 50% to 60%.
- 29 March 2020 Banks and DFIs will defer the payment of principal on loans and advances for one year.
- 29 March 2020 Keeping in view the steep decline in share prices, margin call requirement of 30% vis-a-vis banks' financing against listed shares has been significantly reduced to 10%.
- 29 March 2020 The regulatory limit on extension of credit to SMEs has been permanently increased from Rs. 125 million to Rs. 180 million
- 25 March 2020 The Central Bank will refinance banks to provide financing at reduced end-user rate of 3 percent for 5 years for the purchase of equipment to detect, contain and treat the Coronavirus.
Other measures and sources
Relaxation in trade and cash/ government subsidy
- 10 April 2020 the government has taken some major decisions, including approval of clinical trials of plasma therapy and locally made ventilators for treatment of critically ill patients and permission for manufacturing of sanitizers and production of Chloroquine, the medicine for malaria
- 10 April 2020 The Central Licensing Board of the Drug Regulatory Authority of Pakistan (DRAP) has approved local manufacturing of Chloroquine phosphate active pharmaceutical ingredient (API)—a drug used in management of SARS-CoV 2 infected patients
- 10 April 2020 The Economic Coordination Committee (ECC) of the Cabinet has approved the deferment of monthly and quarterly fuel adjustments in the electricity bills for power consumers for the next three months (till June 2020) under the government relief package
- 10 April 2020 The Asian Development Bank (ADB) has repurposed $50 million from Pakistan's National Disaster Risk Management Fund (NDRMF) to support the government of Pakistan's preventive and response efforts to fight the outbreak of the novel coronavirus (COVID-19) in the country.
- 06 April 2020 Power Division has reportedly prepared power tariff freezing for three months aimed at minimizing financial burden on the Coronavirus-hit consumers, estimated financial impact of which will be Rs 381 billion
- 03 April 2020 The Government of Pakistan (GoP) announced a special incentive package for construction industry
- Establishment of construction industry development board for development of construction industry
- Complete amnesty has been proposed and no questions will be asked about the source of investment made till 30 June 2022
- Reduction of project approval time preferably to 45 days;
- 30 March 2020 The Government of Pakistan (GoP) has approved the fiscal stimulus package of Rs. 1.2 trillion and Supplementary Grant of Rs. 100 billion for the "Residual/Emergency Relief Fund" in relation to provision of funds for mitigating the affect of COVID-19 for the impacted population.
- 30 March 2020 Rs. 200 billion of cash assistance for the daily wagers working in the formal industrial sector and who had been laid off as a result of COVID-19 outbreak.
- 30 March 2020 Rs. 50 billion for Utility Stores Corporation to provide essential food items to the vulnerable section of the society at subsidized rates.
- 26 March 2020 Pakistan is in negotiation with the International Monetary Fund (IMF) to seek additional $1.4 billion fast-track and upfront payment package to fight of Corona Virus
Main sources of information
Contact us
Tax: Rana Nadeem Akhtar – rananadeem@kpmg.com
Legal: Shaheen Qureshi – shaheenqureshi@kpmg.com
