It is not pandemic which has contracted economic growth but the measures that have been taken to counter the outspread of COVID-19. Travel & tourism have been stopped globally, daily wagers are at home, and most of the human resources are self-quarantined. Industries are at halt, exports are declined, and the real estate industry is also at standstill. The International Monetary Fund (IMF) has anticipated lower global growth due to the spread of COVID-19. Interestingly, the economy expected to grow by 3.3% would contract by 3% this year. This outbreak has produced multifaceted global problems and clouds of uncertainties are on the horizon. As reported by IMF “many countries face a multi-layered crisis, which is caused by health shock, domestic economic disruptions, falling foreign demand, the reverse of capital flow and the collapse of commodity prices”.
The dynamics of the world economy may change due to this pandemic. The most used phrase in these days; the world will not be the same after COVID-19. Indeed, our generation will be going to witness drastic changes across the world. The Transformation will be swift and it may not be realized by anyone. However, this transitory phase has the potential to influence us culturally, religiously, economically, politically & socially. Nevertheless, xenophobic minds will prevail in the world as the staunch advocates of Globalization will be bequeathing anti-globalization. Immigration policies will be stringent and future decisions will be based on the concept of utilitarianism. The developed world will redefine and prioritize their spending. A major chunk of the budget will be utilized in the research and development, education and health sector.
This ongoing grave situation has bought many challenges for Pakistan as the global economic growth projections of international organizations have been turned upside down. According to the IMF report, the US economy will shrink 5.9% this year and Eurozone 7.5%. Pakistan should follow a stringent policy road map to revive its economic outlook. Politicization of issues related to infrastructural development shall be avoided, ease of doing businesses shall be promoted, export oriented manufacturing industries shall be subsidized; measures shall be adopted to revive the real estate industry. Entrepreneurship literacy programs shall be launched across Pakistan to aware the jobless about the locked possibilities. This situation requires bold and informed decisions because the economic impact is unprecedented.
Disclaimer: The views expressed in the article are author’s own and do not necessarily reflect Dunya News’ editorial stance.