SAARC Countries unveil emergency economic packages to fight Covid-19. Packages intend to boost investments and private businesses. As per the World Bank, South Asia faces the worst economic performance in 40 years. Hence, SAARC nations have come up with stimulus packages to support their economies. India, the biggest among the SAARC, unveiled a Rs 1.7 Lakh Cr economic stimulus plan. It includes direct cash transfer to poor senior citizens & women and free food grain &cooking gas. The Central Bank cut key interest rate by 75 bps to make loans cheaper. Pakistan announced Rs 1.2 Lakh Cr rescue package for businesses and vulnerable people. The Govt has allocated Rs 7,500 Cr for SMEs. Bangladesh has announced $11.6 Bn stimulus package. The package is equivalent to 3.5% of the country’s GDP. Sri Lanka’s Central Bank announced $250 Mn refinancing facilities for banks. Sri Lanka also plans to enter into an agreement with RBI for currency swap worth $400 Mn. Nepal announced a relief package that includes 25% discount on electricity. Govt of Maldives announced $161.8 Mn stimulus package to boost the local economy. The Bank of Maldives announced $2 Mn short-term financing facility for the tourism industry. Afghanistan Govt has allocated about $25 Mn to deal with the crisis. The World Bank has approved $100.4 Mn grant to support the war-torn country’s economy.
