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ASSIGNMNET OF MACROECONOMICS

ABDUL BASIT
SIR FAISAL SALEEM
ID:15533
5TH SEMESTER
THURSDAY 3 TO 6
AFFECTS OF COVID 19 ON ECONOMY OF PAKISTAN
As we all know about the global pandemic covid 19 has killed thousand
of people in the whole world. The global economy is about to suffer
from a huge loses around the world. On Tuesday crude oil is trade on
-0.37.63 per barrel but no countries is buying because of zero demand.
In Pakistan government shutdown all the trade activities from other
countries and including its industries import, export, textile , automobile,
transportation , petroleum , all are complete shutdown due to the spread
of covid 19. It has huge impact on our gdp because these are the sectors
which provide a huge amount to the government to run the country.
Interest rate fluctuate. Investor loss faith to invest in the market.
customer jump to facilitated themselves. Some of the affect which I see
are written below.
UNEMPLOYMENT
When this pandemic start spreading in the world rapidly the countries in
the world get in to the lockdown the industries are closed. The newly
established companies who are not able to give salaries to their
employees for more than one month without earing a single penny are
start firing their employees to save their companies. More than 24 lacs
worker unemployed in Pakistan and 220 million are recently
unemployed in USA. It’s a very sensitive time for the whole world to
run their economy specially the Asian countries like Pakistan, India ,
Bangladesh because these are the densely populated countries by large
amount of poor people living in slums with 10 to 15 member in one
slum.
COMMUNICATION BREAKOUT BASED ON THE WORKFORCE
INVOLVEMENT OF EMPLOYEES
As we all know the only way to get out of this disease is to make a social
distance from other because this virus is transfer from person to person.
There is large number of people who are coming from different areas of
the city. If the companies allow to work physically on routine the virus
spread rapidly. We all know that it is very difficult to work from home
for those who has internet issues, electricity issues in several areas, so
many of companies will shutdown there work and fire some of there
employees because they cant afford much loses which they have already
facing now a days.
LACK OF PRODUCTIVITY
During these days with so much restrictions by the government and also
people are taking care of their health. Most of the companies need a high
workforce to do some project but now all the sector for import are
closed. Team works are in pending because all most a big projects need
a number of teammate to work together for the companies. No further
advancement in any sector not making a single commodity to export in
different countries. Our growth rate are decreasing so fast which is
already not increasing for the last 2 last years. when the new government
came into action.
CUSTOMER ARE SWITCHING TOWARD NEEDS
We all couldn’t imagine about this pandemic customer who are likely to
buy product an expensive products which are the demanding for them
thinking about to update and enhance there life style wanted to change
some products which are getting old. But suddenly no one knows about
that the world is facing the worst time ever in the history the superpower
like America and china and Russia are complete lockdown not earing a
single penny but giving their people are billions of dollars to stay at
home for the safety of themselves and other in Pakistan same as like the
other countries complete shutdown, now the focus of the people are just
on the basics necessities to survive in the lockdown.
AFFECTS ON BUSINESSES DUE TO COVID 19
All the businesses small and gents are not allowed to perform any
economic activity which make a large amount of people work together.
The real affect of the shutdown are on the businesses because most of
the businesses are seasonal which have a different stock for the seasons.
Most of the businesses in the globally are now running on payables and
make payment after the sale of the month. But from the past two three
months no payment are made by the retailer because of no sale a lots of
customer are lost faith to came in the market. Lots of businesses are
dissolve because the people need money to survive in that time not to
reinvest in the market or pay salaries to the employees instead they are
earing single rupee. The businesses of food industries who are exporting
there frozen item to other countries are facing a real loses because their
product are no longer stay in the containers because they get uneatable
after their time is over.
The demand of automobile also decrease because in Pakistan 70% of the
raw material are import form the other countries of the globe. So when
the lockdown get over in few days and market open the automobile
industries can not import parts of their cars from the other countries
because the European countries are decided a lockdown to September
2020. The price of the of luxury cars increase so much because of no
supply from the sources. So at that time the local manufacture have a
chance to enter in the market with no compromise in the quality to gain
and stable their market again and build a strong relation with their
customers.
Our finding were that annual GDP for the current fiscal year (FY20)
might shrink by-5% year on year, and the final quarter (until June 2020)
could contract by -10% on quarter to quarter basis. This does not differ
too much from other recent attempts at modelling other countries
economies, including the united state, where quarter on quarter declines
are estimated in the range of 8.13%.
If you see the impact of covid 19 lockdown with an example which I
think is more relevant in this situation. The average Pakistani household
spend 40% of monthly income on food and 20 % on housing and
utilities. And the other 40% for the saving to use in the bad time which
are using in this pandemic situation right now but when the saving are
getting used so much they get fished and that day the people are start
coming on roads and that situation will not be control by the
government.