2020 has brought with it a serious problem in the form of COVID-19, commonly known as coronavirus disease, which has damaged the economies around the world. The virus has killed more than 60,000 people so far and it is still spreading rapidly in the different countries of the world. The coronavirus has affected the economy of the world and Pakistan is one of the country whose economy is disturbed due to the COVID-19 virus. Mainly the virus has affected the imports and exports of Pakistan. The government is making every precautionary measure to prevent the virus from spreading.
The Covid 19 virus in Pakistan is increasing daily. The country is partially closed. Companies operate less than half of their normal capacity due to a lack of raw materials, a shortage of labor, or restrictions by the provincial governments on the civic movement that affect supply and demand overall.
Both the imports and exports of Pakistan faces downtime due to the coronavirus crises. Let’s pray for the virus to end soon so that the country will be back on track.
Coronavirus and its Effects on Imports and Exports of Pakistan
Pakistani exports declined 15.56% in March 2020 due to exposure to coronavirus. According to the Pakistan Bureau of Statistics, exports fell from $2.14 billion last month to $1.8 billion. Imports declined to $3.30 billion in March, a decrease of 19.80% from $4.19 billion in February 2020. The trade deficit was $1.49 billion in March 2020, compared to $2.04 billion in February 2020, down 27.04% from the previous month.
Over the past two years, Pakistan has devalued its currency by about 32% and introduced a number of incentives for producers and industrialists to increase their exports. Last month, the country also received a $6 billion bailout package from the International Monetary Fund (IMF), which promises to adjust the exchange rate according to market conditions. However the current condition of the economy of the country is not good due to coronavirus.
Pakistan’s Major Trading Partners
There are five major trading partners of Pakistan.
- China
- USA
- Japan
- UK
- Germany
The pandemic has hit the China, USA, Japan, United Kingdom, and Germany, China and the United States have been hardest hit. However, international trade in these countries has been seriously affected. China and the United States are important partners, and Pakistan is heavily dependent on trade of products and capital. The shortage of imported goods will lead to a shortage of raw materials used for the manufacture of goods and goods in national and international markets. On the other hand, the countries that are our major export partners, any economic damage we are exposed to will undoubtedly affect our exports.
Decrease in Oil Prices
World oil prices have dropped to a record high in a few years. Finally, Pakistan will benefit, as oil is a major part of the import bill. The government will reduce oil prices next month according to the world market prices and transfer all the benefits to Pakistanis. Prices for many products will also decrease as the decrease in oil prices which will be a relief for the people of Pakistan.
Final Word
We hope this pandemic will end soon and everything will get back to normal. We all need to play our part to stop the prevention of coronavirus by maintaining social distancing and following the orders of the government. All we can do is wait for the world to get normal and start the proper trading again. Till then take care of yourself by staying at home. Stay home, stay safe, and stay healthy.
