Pakistan is considering a stimulus package to bolster its economy, reported Bloomberg on Tuesday, as the country recovers from its first contraction in almost seven decades.

Newly-appointed finance minister Shaukat Tarin, the fourth in three years of the PTI-led government, is leading the initiative, added Bloomberg, quoting people asking not to be identified as the discussions are private.

The talks are initial and nothing has been decided, the people said.

No formal proposal exists, Tarin said in response to questions.

Pakistan’s economy has been projected to grow 3.9% in the outgoing fiscal year, a massive recovery from the contraction it experienced a year ago. As the pandemic hit, estimates for this fiscal year became even more conservative with earlier projections falling in the range of 1.5%-2.5%. However, the announcement of 3.9% growth has surprised followers, and beaten earlier estimates.

Reports are also rife of active renegotiations with the International Monetary Fund (IMF), including discussions on power tariffs and some taxes. Addressing a pre-budget seminar on Sunday, Tarin also said that further power tariff hikes were being ruled out.

Meanwhile, the stimulus options could include incentives in collaboration with the central bank or packages targeted at the poor, said one of the people. Pakistan has already disbursed Rs203 billion in cash handouts to the poorest segment of society, while the central bank introduced multiple support packages.

Tarin was appointed in April just as Pakistan started to face a third wave of coronavirus cases, prompting authorities to order a week-long shutdown followed by another in the commercial capital Karachi.

Amid the coronavirus pandemic, Pakistan introduced a number of packages including the Ehsaas Cash program to deliver a one-time emergency cash assistance to 15 million families at risk of extreme poverty.

Pakistan’s central bank also reduced the interest rate by 650 basis points, and introduced concessional reforms in loan repayments.