It looks like the economic problems of Pakistan are not going to be alleviated in the near future. As the pandemic of Coronavirus is already creating severe difficulties for the economy of the country.
The impacts of Coronavirus are far-reaching. In the cycle of impacts, Pakistan is going to lose millions.
A report of the Asian Development Bank (ADB)!
According to the report, Pakistan may suffer $16 million to $61million owing to the novel Coronavirus. The report further said Pakistan’s GDP may see a decline of 1.57% and around 9,46,000 people may lose their jobs.
Besides, the report showed a decline of $77 billion to $347 billion in the global GDP, following COVID-19.
The report stated that in best case situation, Pakistan’s agriculture and the mining sector could bear a loss of $5.5 million; hotels and restaurants $0.67 million; light and heavy manufacturing $3.6 million; business trade, personal and public service $5.54 million and transport services $0.92 million.
Effects of Coronavirus on Pakistan’s economy!
Pakistan exports will fall drastically, as consumers’ rates will decline worldwide. Currently, Pakistan’s major exports are garments, surgical equipment, sports goods and agriculture products. When the consuming rate will alleviate the exports will decline, soaring Pakistan’s trade deficit.
Moreover, the pandemic will immensely affect the tourism sector of Pakistan. In 2015, as per a report, tourism contribution to GDP was 2.8 percent. Expectedly, Pakistan’s tourism could grow to $1 trillion in 2025. However, the pandemic of Coronavirus has obstructed the way of tourism. After the confirmed cases of COVID-19 in Pakistan, tourism in the country is already going down.
Furthermore, the Civil Aviation Authority (CAA) may expect more losses. As travel across the globe shrank, the PIA along with CAA shall expect a further loss of money. This will wreak havoc on the already dwindling economy of Pakistan.
Additionally, trade across the globe witnessed a drop. Therefore, Pakistan’s trade with Afghanistan, despite the peace agreement will shrink due to the virus. Moreover, the country’s trade with Iran and China will further decline. Pakistan exports heavily to China which will eventually fall. To prevent the virus from spreading further, earlier, Pakistan had halted all flights to China.
The novel Coronavirus will have far-reaching repercussions for the economy of Pakistan. China the most important strategic and economic-ally of Pakistan, who itself is facing economic turmoil owing to coronavirus and trade-war. China’s exports have plunged to 17.2 percent since February 2019 while imports dropped by 4 percent.
What should Pakistan do?
In this grave scenario, not only Pakistan but the world is struggling. Pakistan needs to hinder the virus as much as it is possible. The country shall assist those in making vaccines for the virus. Once the vaccine develops, the looming sword of COVID-19 will be eradicated.
Furthermore, Pakistan shall try to make more tablets of chloroquine phosphate, which were exported to China. The tablet effectively treated patients affected by the disease.
Above all, Pakistan along with various countries shall pray that the vaccine may develop as early as possible. Otherwise, the impacts of coronavirus on Pakistan and the world can face extreme consequences.
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