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Coronavirus badly hit Pakistan’s already-strained economy

Pakistan economy

Pakistan economy will have bad after effects due to the current Coronavirus pandemic. Exports will mitigate and the burden on debt servicing will increase.

The word is rising to the post-corona and Pakistan is bracing for the economic forecast the lockdown has brought. Forecast of a squeezed export market of Pakistan has already been made and the export revenues will confine to only external investment and overseas payments.

According to the world economic outlook issued by IMF in April, the USA’s growth will squeeze, India, U.K. growth will come to negative. The economic growth of Afghanistan, Germany, UAE, the Netherland, Spain, and Italy will also show a negative trend. Pakistan economy is also expecting a negative growth of -0.38 percent.

Moreover, the economic growth of China is likely to be 1.2 percent in the current year.  The negativity of these economies will adversely affect the export of Pakistan. Although, there was an increase in export of the country in April, yet, according to economists the effects of corona will appear in the coming months.

There was a sudden fall in the oil prices worldwide due to corona but many countries have now come out of the lockdown situation there and now there is an increasing trend in the oil prices.

The size of overseas payments remained low during the last few years but in the current year, an increasing trend was witnessed. In the first nine months of the year 2019-20, Pakistanis working abroad sent 2.14 dollars to the country which is higher than the amount sent last year during the same period. 

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