Countries like Pakistan which mainly depend on foreign remittences, foreign aid and foreign loans are the worst affected in post corona world. This pandemic has rattled the roots of most of solid economies across the world, mostly those which are prime aid donors to Pakistan.
Economies are contracting across the globe. This year alone, World Bank has predicted a contraction of 5.2%. This is just an average as this would vary from country to country. For developing and under-developed countries, things will be lots worst. Pakistani markets are largely concentrated in few sectors and there is lots of state meddling to keep it steady. But the sheer number of companies going bankgrupt and drying up of foreign largess, even state won’t be able to prop it up for long.
We are not willing to cut down expenditures, we are not willing to stop amassing military hardware, we are not willing to pay taxes, we are not willing to become self-sustained and as usual are expecting foreign help. That won’t be coming anytime sooner and it will be too little and too late if any comes at all.
Analysts and other financial experts are at loss to count the losses. They are facing an uphill task to measure the impact of the crisis they have likened to a global natural disaster, but the huge size of the impact across so many sectors and countries has made it hard to calculate, and made predictions about any recovery highly uncertain. Downgrades of economies are happening everywhere.
Pakistan’s stock market is already nose-diving and current pauses are just result of state sponsored stimulus. This will eclipse the Great Depression of 1929 as more and more people are falling below the poverty line.