write an essay on impact of covid 19 on the world economy import and export of pakistan
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Pakistan has been one of the countries worst affected by COVID-19, with the economic disruption caused by the pandemic exacerbating an already existing crisis. This paper discusses how the public health crisis has affected some of the most critical sectors of the Pakistani economy. While the government has implemented some mitigation measures, they are inadequate to counter the impact of the pandemic. The paper analyses the likely fallout of a near-meltdown of Pakistan’s economy on the nation’s hybrid political system that is dominated by the military. Finally, it examines the impact of Pakistan’s economic crisis on its strategic environment and strategic alignments, especially its relations with India.
Months before the pandemic, in July 2019, Pakistan was forced to seek an Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF) due to its twin deficit problem, i.e. fiscal and current account. With aggressive curbs on imports and massive devaluation, the country managed to reduce the current account deficit (CAD) by over 70 percent in the first seven months of Financial Year (FY) 2019-20. However, this came at the expense of economic growth, which fell from 5.6 percent in 2018 to 3.3 percent in 2019. In 2020, it was being projected to fall further to 2.4 percent, without accounting for the pandemic. Meanwhile, the fiscal deficit problem continued unchecked—partly because the revenue collections fell drastically short of the targets and because the government slashed developmental expenditure to demonstrate a positive primary balance, which was one of the conditionalities of the IMF
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A week ago, President Arif Alvi congratulated the nation for its "victory" against COVID-19 during an interview with a local broadcaster. Alvi said the government successfully saved the country's poorest from the financial impact of the pandemic. At the time of Alvi's commendation, the confirmed number of COVID-19 patients in Pakistan stood at 259,998 and 2,085 new cases had been recorded in the last 24 hours. Pakistan's exports primarily comprise of textile products. These exports are down since the COVID-19 crisis started, with some orders even being canceled. Moti does not expect demand to pick up again post pandemic. "All of this will negatively impact foreign reserves and ultimately the currency value. In the long run, financial markets will also be negatively affected," he said. When Khan took power in 2018, Pakistan's GDP growth was around 5.8%; now it is 0.98% and is likely to decline further. The country's fiscal deficit is almost 10% and revenues have plummeted in the past two years.