How will the Corona virus affect Pakistan’s economy?
The global outbreak of the Coronavirus, affecting various large-scale businesses around the world. Pakistan is also facing this sensitive situation and the Coronavirus will have a very negative impact on Pakistan’s economy. Recently in an interview with the foreign news agency, the prime minister of Pakistan Imran Khan said that “Rich countries should wave off the loans of poor countries in order to curb the prevention of coronavirus. In case we get swamped by this virus, our health facilities will not be able to cope with it”
So we are going to have a very negative impact on each of our economic departments because of the Coronavirus.
Initially, the financial system of Pakistan has been estimated at Rs 1.3 trillion in various departments.
The slowdown in the services sector will have a direct impact on Pakistan’s GDP including import-export business, services of airlines, trading, e-commerce business, disruption in food supplies and many others. Recently Prime Minister Imran Khan recently advised all economic sectors to control inflation, ease out interest rates and encourage business activities by focusing on ease of doing business.
National and international organizations assessments about the damage to Pakistan’s economy due to the Coronavirus.
The Asian Development Bank (ADB) in its report estimates the loss as the virus spreads to Pakistan’s economy from $ 16.387 million to $ 4.95 billion, or 0.01 percent to 1.57 percent of gross domestic product (GDP).
But after this report, Pakistani authorities became convinced that these estimates are less than the actual loss as expected because they have no basis.
The United Nations estimates the loss as international tourism to drop 3% due to virus resulting in a loss up to $50 billion globally, this is another worse news for the government of Pakistan which is committed to increasing tourism exports.
These losses in Pakistan’s economy could easily have a worse impact.