Issue Brief on “Impact of Covid-19 on Economy of Pakistan”

10252

The pandemic termed the COVID-19 (coronavirus) has exponentially spread across the globe since the first case was reported in Wuhan China in late December 2019. The virus has led to more than 3.1 million cases and 215 thousand deaths across the world.[1] And the numbers are rising. In order to ‘flatten the curve’ of growing numbers of infected people, governments around the world have been forced to impose complete lockdown of their societies and businesses. The main concern for the Government of Pakistan (GOP) has been the economic impact the lockdown will have on the poor segments of the society, and fragile economy on the whole. The Pakistani Stock Market’s benchmark KSE-100 Index has plunged by over 25% in March, and the rupee by over 6%. Pakistan’s economy is projected to face a loss of up to 4% of its GDP due to disruptions in trade, potential decline in FDI and remittances, and fluxes in other sectors such as aviation, tourism and hospitality, caused by the lockdown imposed in the country. The dire economic effects can already be seen, with widespread lockdowns freezing most normal activity, export orders cancelled and vast numbers of daily workers suddenly jobless. [2]

Read More