News update: – 18th March 2020, according to the recent news as the global coronavirus outbreak, which has affected the operation of factories in China and other countries, affected the economy as well. While, in Pakistan, though the trade balance was going in the right direction and was improving in the accurate track. But due the coronavirus (COVID-19) has become a threat to the rate of progress.
Furthermore, the recent reports of the Asian Development Bank report that the virus outbreak could cost the Pakistani economy between $ 16.387 billion and $ 4.95 billion, or 0.01% to 1.57% of Gross Domestic Product (GDP). While the United Nations (UN) estimates that international tourism will drop 3% because the virus results in a loss of up to $ 50 billion worldwide, is another bad news for the government that is committed to increasing exports of tourism.
The International Monetary Funds (IMF) closely monitored the bleak situation and announced a $ 50 million program to combat the aftermath of the virus outbreak. In addition, the worldwide development rate for 2020 is predictable to be below the 2.9% rate for 2019, the US Federal Standby. Moreover, the USA Declaration of a cut of 50 basis points recently followed by the Bank of Canada to facilitate monetary policy to support business activities halted by fear of viruses. Whatever the case, Pakistan is determined to improve Pakistan’s economic situation.
Due to the recent curfew because of Coronavirus it is expected that the global growth rate for 2020 is expected to be below the rate of 2.9% for 2019. Prime Minister Imran Khan just suggested connected subdivisions to control increase. As the lower interest rates and encourage business activities by focusing on the ease of doing business.
While Pakistan is poised to reap benefits from the EU’s GSP plus status, especially in the Textiles field, where orders to Pakistan increase while China is tightly closed.
In addition to Europe’s GSP status after Brexit, the United Kingdom (UK) noted doubling its trade with Pakistan due to the improvement of the country’s security situation. The good news is that the impact of the virus on the activities of the China Pakistan Economic Corridor (CPEC) will be negligible as indicated by Pakistan’s envoy to China.