The Federal Ministry of National Health Services, Regulations & Coordination published a National Action Plan for COVID-19 (updated on 7 March 2020), a policy document laying down principles for outbreak preparedness, containment and mitigation. On 22-23 March 2020, all provincial governments issued notifications that have imposed restrictions on movement and gathering of people.
Key amongst the exemptions from such restrictions are personnel and operations of industries engaged in essential services, including food, healthcare, electricity generation, distribution and transmission, gas utilities, agriculture, sanitation, telecoms, banks, capital markets, goods transport, distribution, storage, printing and packaging in respect of essential services. However, even with essential services, only bare minimum/technical personnel are be exempted from the restrictions.
On 1 April 2020, the National Coordination Committee on COVID-19, comprising members of the Federal Cabinet, Chief Ministers of the Provinces and senior members of the armed forces, decided to extend the country wide lockdown until 14 April 2020. When announcing the Special Incentive Package for the Construction Industry on 3 April 2020, the Prime Minister stated that the construction industry would resume activity from 14 April 2020.
The Federal Government’s Fiscal Stimulus Package
The Economic Coordination Committee (ECC) of the Cabinet in its meeting on 30 March 2020 approved a fiscal stimulus package with an outlay of Rs. 1.2 trillion. The main components for businesses are (i) Rs 75 billion to enable the FBR to make payment against claims from the last 10 years for sales tax and income tax refunds and duty drawback; (ii) Rs 30 billion to pay duty drawback claims to textile exporters in the current financial year and (iii) exemption of advance tax on import of pulses and additional customs duty on soya bean, palm, canola and sun flower oil and seeds. In addition to the aforesaid, which were mentioned in the pressreleaseissued by the Ministry of Finance, the Prime Minister announced Rs 100 billion allocation towards red payment of loans by the agriculture sector and SMEs. He also announced that the SBP shall direct banks to provide ‘easy’ loans to businesses that do not lay off employees in the midst of this crisis.
On 3 April 2020, the Advisor to the Prime Minister on Finance stated that Rs. 200 billion had been allocated for those who have become unemployed or require income support due to the restrictions imposed to combat the outbreak of the Novel Coronavirus.
