Karachi
The State Bank of Pakistan (SBP) has issued its flagship annual publication, the Financial Stability Review (FSR) for CY19. The Review presents performance and risk assessment of various segments of the financial sector including banks, non-banking financial institutions, financial markets, non-financial corporates and financial market infrastructures. The FSR notes that the outbreak of COVID-19, the trigger for the Global Health Crisis (GHC), has had significant consequences for the global and domestic economy. As elsewhere, the dismal impact of COVID-19 on Pakistan is still unfolding. The country, after imposing lockdowns, has moved towards easing some of the restrictions, amid rising levels of infection. This should help provide support to economic activity. In order to limit risks and facilitate stakeholders, SBP has taken a host of policy measures. These measures include substantial monetary easing, release of capital buffers, deferment of the repayment of principal loan amount for corporate, SMEs, and household borrowers, restructuring/rescheduling of loans, concessionary financing to save jobs and boost health care to combat COVID-19, ensuring availability and continuity of financial services, and reduction in payment system related costs.
