Financial Crises in Pakistan Due To COVID19

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The whole the world is suffering from crises, due to a new deadly virus. The world economy also crashed; the governments of all countries are struggling to save the lives of their people. So, Similarly, the underdeveloped country lives Pakistan is in more trouble as compared to the countries which developed and economically stable. Pakistan has so far registered nearly 270,000 cases of coronavirus and more than 5,700 related deaths. Last week, President Arif Alvi congratulated the nation on "victory" against COVID-19 during an interview with a local broadcaster. Alvi said the government had successfully rescued the country's poor from the financial impact of the epidemic. At the time of Alvi's recommendation, the confirmed number of COVID-19 patients in Pakistan stood at 259,998 and 2,085 new cases were recorded 24 hours ago. Prime Minister Imran Khan's government says the drop in the daily number of new coronavirus cases in July is due to his "shutting down" strategy. But observers say the practice could be the result of poor reporting and inadequate testing. The epidemic has also had a devastating effect on Pakistan's economy. "Pakistan's economy is declining, unemployment is growing, and various sectors are in crisis," warned Zafar Moti, a former director of the Karachi Stock Exchange (KSE). Moti told DW that he is not too concerned about Pakistan's financial markets and is very concerned about the long-term impact of the epidemic. Exports to Pakistan mainly contain textile products. These exports have declined since the start of the COVID-19 crisis, with some orders even being canceled. Moti did not expect the need to take over the epidemic again. "All of this will have a negative impact on foreign exchange reserves and ultimately value for money. Over time, financial markets will also be affected," he said. When Khan took office in 2018, GDP growth in Pakistan was almost 5.8%; is now 0.98% and is likely to decline further. The country's deficit is about 10% and revenue has dropped dramatically in the last two years

The bold decision of the Federal government for ending lockdown and starting smart lockdown was very appreciable. This decision gives life to the economy of the country, still, some bold steps are required to come out of these crises. Because the post-COVID effects are very dangerous and they will be lasting for a long time. The government should take it as an opportunity as imports were reduced at a high level. So, now the government should impose some possible more taxes and even bans on unnecessary or luxury items which are being imported in large quantity. Similarly, the government should take some measures to improve the exports, by providing subsidy to exporters or providing ease on importing the machinery of goods productions. The coming times are changeling and difficult so, the government should curtail the budget of entertainment and other facilities of the diplomates and the high officials of the government. We should start doing something before it may too late. These small steps will contribute to the economic improvement of the country.  


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