Title: AN EMPIRICAL ANALYSIS OF MONETARY MEASURES TAKEN BY STATE BANK OF PAKISTAN TO CATER THE CATACLYSMIC IMPACT OF COVID -19 ON THE ECONOMY OF PAKISTAN
Abstract:COVID-19 has posed an unprecedented challenge to the economies of the World. Besides safeguarding sustainable financing for health, Governments were struggling to ensure the economic and financial sus...COVID-19 has posed an unprecedented challenge to the economies of the World. Besides safeguarding sustainable financing for health, Governments were struggling to ensure the economic and financial sustainability of their countries. The role of the central banks was critical in this regard and they were under severe pressure to save the economy from the catastrophic impact of Covid-19. Using their mandate, the central banks across the countries took monetary measures to avoid the economic meltdown. This paper discusses the measures taken by the State Bank of Pakistan to save the economy from the adverse effect of COVID-19. The analysis shows that the steps taken by the central bank of Pakistan were pertinent and lead to stabilizing the dwindling economic situation. Decreasing policy rate, injecting liquidity in the economy, granting loans contributed towards steadiness of households and the business community. Jobs protection scheme was particularly savior for the daily wages who lost their jobs due to pandemic. Further relaxing credit requirements for exporters and importers keep intact the supply chain for necessary items. The findings of the study are specific to Pakistan however the same can be generalized as the steps taken by the Central bank of Pakistan are widely applicable.Read More