Unemployment has always remained the biggest problem of Pakistan and Pakistan is struggling hard to come out with this issue. The unemployment rate in the whole world has been increased due to Coronavirus and Pakistan is also in the same boat. Although thousands of employees are working from home due to lockdown, but the people working on daily wages are suffering a lot. In one study of essay writing services in Pakistan, it is shown that according to the PIDE(Pakistan Institute of Development Economics) millions of jobs will be lost particularly for daily wage earners and approximately 2.4% GDP will be shaved off due to this COVID-19
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It is estimated that about 1.4 million jobs will be lost in case of limited restriction and this makes 2.2% of the employed workforce. If we talk in monetary terms, the three-month wage losses are equal to 66 million rupees. If the scenario remains moderate in which the private offices and most of the shops are closed but the essentials shops are running, 12.3 million people become jobless according to the government. If the situation becomes worst and the complete shutdown comes into practice, then 18.53 million people or 30% of the labor force will lose its jobs as estimated by the government. These people will sustain Rs783 billion in losses. In this case, two-thirds of the workforce includes daily wagers, 30% of the people are working on the piece rate and the remaining are the street vendors as told by the ministry.
A sharp slowdown in trade activities can also be seen in this condition.
According to the one study of online essay help in Pakistan, if a 2% decline in imports and nil in exports occur, then the fourth quarter of GDP will be lost by 0.3% and it is equal to 45 billion rupees. In a case, if both imports and exports are reduced by 10%, the fourth-quarter GDP will be lost by 2.3% or 345 billion rupees. Likewise, a 20% reduction in imports and exports would take the fourth-quarter GDP to the loss of 4.7% of the GDP which makes 700 billion rupees.
BUSINESS, REVENUE LOSSES
According to the government, the aviation sector will lose 9.3 billion rupees and an initial loss of 250 billion rupees will be seen in the stock market. Ministry of Maritime affairs will suffer from the loss of 30 million rupees and the loss of 136 billion rupees will be sustained by the Ministry of Energy. Similarly, the agriculture sector and the Ministry of Railways will lose 55 billion rupees and 8 billion rupees respectively. One report of academic help in Pakistan shows that on the government’s income side, it is predicted that the Federal Board of Revenue could see the decline in revenue and cash outflow of about Rs600 billion in the final quarter of the financial year.
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Textile contributes to 60% of Pakistan’s export. This sector is currently facing the problem of having insufficient raw material. Such as chemicals and dyes that are needed to produce textiles. Most of the raw material is imported from China. The business contributes profoundly to the foreign currency reserves of this dollar-tied nation that gets itself every now and again with simply enough reserves to pay for one and a half to two months of imports.
The last quarter of the current financial year and the initial two fourth of the upcoming financial year FY21 will bring remarkable degrees of cash shortage issues as investors have begun moving into the place of refuge stocks, gold and dollars.
PAKISTAN INTERNATIONAL AIRLINE
Pakistan’s national flag carrier that is PIA is one of the major deficit powerhouses in Pakistan. PIA has been running a net operating loss for the decades and now will end up terminating employees if this situation continues for the upcoming two to three months.
Pakistan International Airline is facing great economic issues and this Covid-19 condition have worst the situation more. If this situation continues, then PIA will start terminating its employees and $63 million will be lost every month if its activities remain halt for the next 25-35 days.
The airline will continue running lost about $63 million every month if its activity stays suspended for the following 25-35 days. The loss of demand is thrashing the worldwide flight sector, with numerous private airlines on the edge of liquidation.
Pakistan is a developing country and passing through the different crises from after another. As the whole world is facing economic issues due to Covid-19, the economy of Pakistan is also in a mess. Covid-19 is destroying the economy similar to the way it is affecting the human body’s immune system. The curve of Covid-19 in Pakistan is steepening as time is passing. The partial lockdown is being practiced in the country nowadays. Organizations are working at less than 50% of their typical limits in light of the lack of raw materials, deficiency of workforce or limitations on the movement of the residents forced by the federal and provincial governments, which is negatively affecting supply and demand.