ISLAMABAD: Pakistan is expected to launch Covid-19 vaccination drive in the second quarter of 2021 as the government is in discussions with several of the vaccine manufacturers and with donors (the World Bank and the Asian Development Bank) for the procurement of extra vaccines which will be funded through a $250 million budget allocation.
This has been stated by the International Monetary Fund (IMF) in its updated report, "Policy Actions Taken by Countries" which reviewed various steps Pakistan has taken to deal with the Covid-19 crisis.
To mitigate the second wave, smart lockdown measures have been re-imposed, along with a general ban on public meetings and rallies, and the closure of educational institutions and venues such as cinemas, theaters and wedding halls.
The government applied to the UN's COVAX Facility which will cover priority groups—around 20 percent of the population.
It is also in discussions with several of the vaccine manufacturers and with donors (the World Bank and Asian Development Bank) for the procurement of extra vaccines which will be funded with a US $250 million budget allocation, the Fund added.
The State Bank of Pakistan (SBP) has expanded the scope of existing refinancing facilities and introduced three new ones to: (i) support hospitals and medical centers to purchase COVID-19-related equipment (39 hospitals, Rs7.78 billion, to date); (ii) stimulate investment in new manufacturing plants and machinery, as well as modernization and expansion of existing projects (294 new projects, Rs223 billion, to date); (iii) incentivize businesses to avoid laying off their workers during the pandemic (2,958 firms, Rs238 billion, to date).
These facilities have been extended beyond their original deadline of June 2020 to September or December 2020.
The SBP introduced temporary regulatory measures to maintain banking system soundness and sustain economic activity. These include: (i) reducing the capital conservation buffer by 100 basis points to 1.5 percent; (ii) increasing the regulatory limit on extension of credit to SMEs by 44 percent to Rs180 million; (iii) relaxing the debt burden ratio for consumer loans from 50 percent to 60 percent; (iv) allowing banks to defer clients' payment of principal on loan obligations by one year (Rs659 billion being deferred to date); (v) relaxing regulatory criteria for restructured loans for borrowers who require relief beyond the extension of principal repayment for one year; and (vi) suspending bank dividends for the first two quarters of 2020 to shore up capital.
The SBP has also introduced mandatory targets for banks to ensure loans to construction activities account for at least five percent of the private sector portfolios by December 2021.
The SBP has introduced further regulatory measures to facilitate the import of COVID-19-related medical equipment and medicine.
These include, (i) lifting the limit on import advance payments and import on open account; and (ii) allowing banks to approve an Electronic Import Form (EIF) for the import of equipment donated by international donor agencies and foreign governments.
The SBP has also relaxed the condition of 100 percent cash margin requirement on import of certain raw materials to support the manufacturing and industrial sectors.
Copyright Business Recorder, 2020
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