Delegates with Advisor of finance and Revenue discuss economic downturn because of COVID-19 on Wednesday.
COVID-19- A delegation of Financial advisors met with Hafeez Shiekh, Adviser to Prime Minister on Finance and Revenue, to explain the damage caused by Coronavirus related economic decline to large-scale manufacturers.
They highlighted that because of coronavirus, the giant manufacturer balance sheet is not sustainable. He further said that the most significant factor of it was the enormous labor cost, especially in labor-intensive industries like garments industries. Any plan to evade permanent worker dismissals or absences was putting extreme pressure on the liquidity of businesses, which were expecting a slow economic retrieval, and hedging against potential insolvency problems.
The delegation head insists the government improve its role to support the crisis face by the businessmen. To which finance advisor Hafeez Sheikh inform them about the prime minister?s incentive package cost Rs1.2 trillion.
The delegation was instructed to come up with the complete case, and its parameters for the financial support as the central bank already introduced a scheme of payroll protection.
Abdul Razzaq Dawood, advisor commerce also show interest in working out the effect of change of goods orders by the US from China to other countries, and its possible outcome on manufacturers in Pakistan.
