ECONOMIC EFFECTS OF CORONA VIRUS (COVID-19) IN PAKISTAN
Introduction to Corona Virus (COVID-19)
Corona Virus and Economy of Pakistan
Influence on Gross Domestic Product (GDP)
Influence on Currency
Influence on Inflation
Influence on Unemployment Rate
Influence on Agricultural Domain
Influence on Stock Exchange
Influence on External Debt
ECONOMIC EFFECTS OF CORONA VIRUS (COVID-19) IN PAKISTAN.
“The economy is the start and end of everything.” (David Cameron)
Corona virus is one of the leading infectious diseases with massive impact on health and economy globally. On 31 December 2019, the world health organization was informed of cases of idiopathic pneumonia in Wuhan, one of the major cities of China and subsequently on 7 January 2020. It was named as the “2019-nCov.” It was declared a pandemic by world health organization (WHO) on 11 March 2020, with the number of cases tremendously escalating and posing a severe setback on developing countries like Pakistan. Today the number of active cases globally are 141 million with 3.01 million estimated deaths.
While the number of corona cases are increasing dramatically, instilling fear among the locals, the economic insecurity is posing a threat to country’s development. Prior to the advent of COVID-19, the economy of Pakistan was already battling to stay afloat, however it was not in profound danger. The pandemic, on the other hand, severely impacted on the country’s economy and has been pushing it towards the edge of bankruptcy in poverty. The total number of active cases in Pakistan as to date are 761 thousand with over sixteen thousand deaths as reported by the National Command and Operation Center (NCOC) which plays an active role against the COVID-19.
Influence on GDP
It was predicted by the Ministry of Finance, Government of Pakistan that there would be a decrease in the GDP of the country due to the corona virus outbreak, although the exact reduction is uncertain. The ramifications that were feared by the Ministry of Finance were:
• The decreased amount of intermediate good and commodity prices due to which the economy would suffer.
• Suffering of exports due to economic derangement in China and USA.
Gross domestic product (GDP) is a pivotal indicator of a country’s economic growth, but unfortunately due to decrease in demand, impediment of supply chains and major withdrawal of orders for export, interferences in transportations, the GDP has been declining sharply: from 1.91% in 2019 to -0.39% in the year 2020.