A Layman’s Thoughts on Mitigation Strategies [COVID]
April 7, 2020
(This is a
long article)
Pakistan does
not have the resources to sustain a lengthy closure yet we can’t all come out “dancing
on the streets”.
However,
I feel a four-pronged action is now the order of the day- continue with Coronavirus
mitigation, restart limited commerce getting people back to work, the
Government works on helping affected companies and uses funds to aid the
unemployed (through registered NGOs).
The
views in this Paper are personal and formed with a combination of thoughts from
family members, inhouse executives and a series of publications on incentives
being created by European governments on COVID-19 mitigation (some bibliography
at the end).
COVID MITIGATION
1.
Government
contracts local, reputed medical manufacturers to urgently manufacture N-95
masks for entire population.
2.
Isolate
areas of city/towns where virus is dense and lock off those areas.
3.
Increase
random testing.
4.
All
“at-risk” people (demographics by age, prior respiratory problems like
pneumonia, heart victims, etc) to mandatorily stay at home.
5.
Guarantee
access to COVID testing & care at no cost - no matter a person’s employment
status
6.
Make it
mandatory for populace wear the N-95 facemasks when out of the house, with stiff,
on-the-spot penalties for contravention.
7.
Any COVID
family member to be isolated – for mental satisfaction, can stay in their own
house but with completely separate facilities, etc otherwise to go to govt
mandated facility. If former, then no
contact between family members.
8.
Affected
people must inform authorities of their condition, whereabouts – and
authorities will keep check on them
9.
Sanitize
& disinfect all public areas (be it transport, bus stops, hand rails, etc)
10.
Ensure
supply on controlled prices of essential commodities, food items &
medicines through utility stores & other channels; and ensure hoarding and
price gouging does not take place.
11.
Pass
on more benefit of int’l oil price reduction to public while government retains
a portion to be used for the poor, daily wagers and unemployed during this
crisis
12. Duty free import for items NOT being locally
manufactured- especially medical supplies.
RESTART COMMERCE
1.
Restart
industrial activity –
a. However, only those companies registered with
the SECP and Federal &/or provincial revenue boards AND are regular tax assessees
would be allowed this facility.
b. Only those companies NOT directly in
contagion areas/zones.
2.
Responsibility
of company directors/owners –
a. Companies to ensure their employees are kept
on the payroll- even if on [paid] leave - from the time of COVID downturn.
b. All normal staff benefits (especially health)
to continue.
c. Daily wagers who are part of company
operations would also continue as if no crisis had continued, even if the work
for which they were casually employed has finished.
d. Worker conditions, hygiene & sanitation
as per COVID guidelines.
e. Where possible, these companies to have
labour stay on premises to reduce contact with outside world.
f.
ALL
workers to wear masks, disposable gloves & use hand sanitizer in their work
areas.
g. When leaving work areas, dispose gloves, use
hand sanitizer but keep wearing mask.
h. Food shifts to be ensured to have minimal
people together for meals
i.
All
utensils to be cleaned with WHO-recommended cleaners- all surfaces, chairs, etc
between food shifts too
j.
All work
places, machines, toilets, etc to be regularly sanitized & disinfected.
k. Temperature reading 3 times for 100% of staff
in each shift.
l.
Immediately
isolation & care of sick workers.
m.
Public
space access – eg malls, offices, hotels, restaurants, etc- hands to be
sanitized and guests to be given disposable gloves & face masks.
n.
Resume
delivery services with delivery person using gloves & mask; and sanitizing
the delivered items in front of recipient before handing it over.
GOV’T BAILOUT OF COMPANIES
By doing the below
actions, Gov’t will help companies absorb the costs and shocks of this crisis,
yet not give direct cash injection, keep people employed (even if at home) and restart
economic activity.
1.
In
return Gov’t will assist such companies subsidize their operations & costs
from beginning February 2020 to end August 2020.
a. In the first phase, would only apply to those
companies which are directly affected by this crisis resulting in over 70% of their
income being affected- and can be proved and established with documentation.
b. Would only apply to companies registered with
the SECP and Federal &/or provincial revenue boards AND are regular tax assessees.
c. Any misuse & contravention of this
bailout by companies would be a criminal action under CrPC.
d. Specified registered private audit firms
would audit revenue-side of each company applying for this bailout prior to bailout
facilities.
2.
Following
are the bailout suggestions-
a.
Exemption from all statutory taxes, duties
& fees (federal, provincial, excise, vend).
b.
Exemption from all labour-related
taxes, fees & cess.
c.
Exemption from Provident fund
contribution from both parties.
d.
Exemption on all TAXES on UTILITIES
for period of shutdown (and all such billing on actual-reading basis and not average-basis).
e.
Heavily subsidized utility costs- electricity,
gas, water & sewerage.
f.
Drastic reduction in markup rates by
slashing KIBOR to 2%.
g.
Exemption from sales tax. If full exemption cannot be given, exempt
period of COVID crisis and defer the payment of sales for the balance period.
h.
Lifting of restrictions on Input Tax claims.
i.
Defer the payments of supplier & employee withholding
taxes.
j.
Defer the payment of Advance Tax.
k. Easy loans to such companies - for which SBP
regulations will not apply and repayment will be over 10 years, with a two-year
moratorium.
l.
Moratorium
for existing commercial loans on such companies by one year.
AID THE UNEMPLOYED
By working
with & through registered NGOs, the government can use cash incentives
directly for other affected workers directly, the underprivileged & families
who are not covered by above companies.
1.
Food
rations to poor people and out of work families to be conducted by &
through REGISTERED NGOs only- like Rotary clubs, etc.
a. Government will provide the food rations to
said NGOs but distribution will be NGOs responsibility.
b. This will ensure that food is fairly and
honestly distributed.
c. Each NGO can be responsible for a certain
geographic area and monitor/record said people through their CNIC.
d. Such data to be provided by NGOs to
provincial gov’t who in turn will cross check it with NADRA database.
2.
This
will be the starting point for the creation of an official unemployment
database too.
The above
will ensure government resources and personnel are better redirected to
controlling & curing actual COVID cases in known contagion areas.
“…and people who keep their jobs ‘are less unhappy
and shocked [..]
They
are less likely to dramatically cut their consumption.
That
limits the overall economic damage.
When
social distancing ends, millions of employer-employee
relationships
will have been destroyed,
slowing
down the recovery [..].”
(REFERENCES-
5.
https://www.theatlantic.com/ideas/archive/2020/03/denmark-freezing-its-economy-should-us/608533/)
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