Economists and industrialists had termed the 75 basis points (bps) reduction in policy rate by the State Bank of Pakistan (SBP) 'nominal' and a 'joke' and not an appropriate response to deal with the coronavirus challenge and domestic ground realities. A week later, the central bank further cut the policy rate by 150 basis points. In addition to these rate cuts, SBP has taken a slew of measures to deal with the coronavirus challenge in an effective and meaningful manner.
The federal and provincial governments, too, are really working harder in this regard; they are in fact trying to get ahead of the deadly virus. The situation requires a unified response. Public at large must keep its spirits up, although there can be no two opinions about the fact that the economic implications of coronavirus spectre are beyond dire.