News update: – April 7, 2020
Pakistan’s economy is expected to face a loss of up to 4.64 % in Gross Domestic Product (GDP) due to trade disruptions in both imports and exports following the COVID-19 epidemic. To tackle this situation Pakistan’s government sector of planning commission has asked the Pakistan Institute for Development Economics (PIDE) to make a plan to approximations of COVID-19 losses due to the GDP growth front.
In addition, the department has presented three different set-ups such as there will be an adverse effect on GDP development of -0.30 percent. On the other hand, there might be a reduction in imports by 2 percent. These presented portray It should be noted that the impact is entirely related to trade chaos, while the impact of internal closures, the potential decline in FDI and remittances.
In this scenario, Kamraj Enterprises will suggest consumers to purchase material with very careful planning. Right now, the world has started to suffer from the negative economic impact of COVID-19. While, the five main trading partners of Pakistan with a share of more than 50 percent are China, the United States, the United Kingdom, Japan and Germany. Four of these countries are the hardest hit by COVID-19, the US and China is the main trade partners with Pakistan. Business owners are in talk about variation but no real progress on this front due to the current situation.
While, on the other hand, Pakistan’s peripheral account state is still showing a hopeful state. According to the research report by AKD, said that the impact of the COVID-19 on Pakistan’s international trade is not “terrible”. This highlights the importance of settlements in the Pakistani economy. The senior authorities believe that in the worst situation, we do not see the much down risk for Rupees in the near term.
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