Socioeconomic Impact of Coronavirus Disease 2019 in South Asia: Fiscal Policy Response and Fiscal Needs for Supporting the Economic Recovery

02 June 2021

This paper assesses the socioeconomic impacts of Covid-19 in three South Asian economies -- Pakistan, Afghanistan, Sri Lanka -- and corresponding fiscal policy responses to mitigate these impacts. Further, it appraises the sufficiency of these fiscal policy responses to support the economic recovery in respective economies. It also estimates fiscal needs to finance the economic recovery and assesses existing fiscal space to meet the fiscal needs. Based on the assessment, it proposes possible option to enhance fiscal space.  It also proposes policy measures to align fiscal stimulus to SDGs agenda and possible venues for regional cooperation to reach to a shared recovery.