Pakistan's economic growth hampered due COVID-19, says envoy to US Asad Majeed

Pakistan's Ambassador to the United States, Dr. Asad Majeed Khan, has said that the ongoing coronavirus pandemic has hampered Pakistan's economic development.

“Unfortunately, it couldn’t have come at a worse time for Pakistan, because of the very tough economic reforms that the government undertook over the last one year,” said Majeed, in an interview to Nasdaq, while highlighting that improvements in growth rates and exports achieved during the period were wiped out due to the pandemic.

The envoy said that the government has taken several steps to provide financial assistance to its masses including an $8 billion stimulus package to mitigate the economic impact resulted from the ongoing pandemic.

The envoy informed that the United States has so far provided $21 million in assistance to Pakistan to combat the ongoing pandemic, which has claimed over 2,000 lives in the country and over 110,000 persons infected by it.

“We have received important contributions from the Pakistani American diasporas who have helped their institutions and cities from which they have originally came from in terms of supporting them,” he said.

While talking about the Global Initiative on Debt Relief, Majeed informed that the developing countries are facing a serious fiscal crunch due to the coronavirus pandemic, so this is an effort to provide much-needed space the developing countries would need to spend on their vulnerable population that requires assistance.

“So this is about requesting the rich countries to allow developing countries to allow some relief in the repayment of their debt, that would provide them that much-needed space,” he said.

Majeed said that Pakistan has benefited from the International Monetary Fund’s (IMF) $ 1.4 billion Rapid Finance Facility. Majeed informed that Pakistan will also seek facilitation from the G20 countries through their deferment plan.

“We hope to receive another $1.8bn relief through that measure,” he said. The Pakistani Ambassador said that the World Bank has also assisted Pakistan in this ‘extraordinary and difficult’ situation.

Majeed also said that Pakistan boosting a growing middle class, and important geostrategic position and attractive investment incentives make Pakistan an attractive investment destination.