COVID-19 and Economic Crisis in Pakistan
Economic Condition of Pakistan
Pakistan is estimated to have faced an economic loss of up to Rs2.5 trillion because of the corona virus outbreak. Government figures project that around three million jobs are expected to be lost in the initial state of the novel COVID-19 pandemic. In fact, Pakistan counted as one of the countries worst affected by COVID-19.
“It is important that we note the weaknesses in our financial system, and work toward implementing solutions before the next crisis comes.”
― Kenneth Eade
The Economic Survey of Pakistan (2019-2020) has exposed that in more than 63 years, for the very first time, our economy registered a record contraction of 0.4% in between the past 6 months. One thing is for sure that the global economy is in a downturn. And Pakistan’s economy is not an exception in this regard. Before COVID-19, Pakistan’s economy was slowdown, which was the result of standardization measures. As the government and the State Bank of Pakistan definitely adopted this.
Impact of COVID-19 on Pakistan’s Economy
This pandemic is disturbing the economy in multiple ways. From interrupted supply lines, multiple business closures to draw up manufacturing plants, every industry have felt its effects.
Major affected categories include small restaurant and marriage halls, with which multiple occupations also affiliated. Schools, colleges and private academies also come under this category as they closed. Means that the professionals affiliated with education are facing severe financial impact with many being laid off from their jobs. Moreover, COVID-19 is triggering shutdowns across Pakistan. These shutdowns have created many of socio-economic problems. Pakistanis, who have suffered the most from the economic impact of the pandemic on lives and livelihoods are predominantly the country’s daily wage workers.
However, the pandemic has severely impacted the nation’s economy and virtually pushed it to the brink of bankruptcy. While Pakistan’s economy does not have the capacity to absorb the massive disruption caused by the outbreak, almost all nations have been considerably affected by the global health emergency. The economic meltdown is taking place across the Pakistan. Exporters have already felt the pinch since the frequency and numbers of new orders have fallout. They are meeting the old orders that were in an advanced position and near to completion.
In certain cases, old orders put on hold as their processing not yet started. This implies that Pakistan should expect lower foreign exchange earnings in the near future.And it is surely not affordable for our international reputation.
Outcome due to Pandemic
Consequently, in the words of Prime Minister of Pakistan, we are facing two challenges. Corona Virus and its economic impact on the poorest sections of the society. Furthermore, according to the World Bank, Pakistan is among the highest charity giving nations in the world. And with one of the youngest populations, Pakistan and its economy needs both of these to rise above the attack of this deadly virus. Our lives and our livelihood tied up during this time of global challenge. Everyone needs to pitch in to rescue each other from this trial. As said by a Pakistani guard in an interview to an International TV Channel,
“We are not rich but we have big hearts and with it, we will defeat Corona Virus.”
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