Many companies will go bankrupt, unemployment will rise, foreign exchange reserves will decrease, State Bank of Pakistan warns

ISLAMABAD / KARACHI: The State Bank of Pakistan (SBP) has released a report on the impact of Corona on the economy. According to Corona, trade has been affected and many companies may go bankrupt. Corona has affected local business activities and people's purchasing power. Declined and foreign investment has also declined.

According to the SBP, the impact of the corona virus on the global economy has also reduced remittances and investment, low oil prices have benefited importing countries, and corona has affected business at the local level. Purchases fell and so did foreign investment.

SBP saves more than 200,000 people from unemployment SBP raises loan limit to Rs 50 crore for hospitals and medical centers, slows down revenues due to economic slowdown, locks down to control epidemic Many companies could go bankrupt if the situation continues to affect the cash flow of factories and the business community.

According to the report, bankruptcy of companies will affect the income of banks and closure of businesses will also increase unemployment, while in the current situation, foreign exchange reserves may decline, according to the report. It is feared that the rate of economic growth and budget will be affected.

According to the SBP, Pakistan's economy had begun to recover before the Corona epidemic. The government took several steps to improve the economy, which led to a drop in imports and an increase in exports. At the beginning of fiscal year 2020, revenues began to rise, business confidence grew, and foreign investment began to grow rapidly.

The report says that government spending on the health sector is lower than other countries in the region, and in the current situation, public awareness is essential.