By: Muskan Shahzad
The coronavirus (COVID-19) epidemic has had an adverse impact on regional and global industries. Business organizations are dealing with a variety of problems, some of which are challenging their survival. Nearly 50% of the medium sized firms are currently laying-off their employees as a cost cutting technique. Due to this period, major issues have been observed in a variety of sectors, involving diminishing household funds, severe difficulties paying outstanding bills and other loans, and accessing healthcare services.
Pakistani companies are vital to the economy since they account for more than 90% of the approximate 3.2 million economic institutions and facilitate 40% of GDP and 40% of trade income (SBP, 2016; Shah, 2018). These enterprises may be found in both private and public locations throughout Pakistan, and they account for a large share of the agricultural, manufacturing, sales, retail, commerce, and service sectors. This would include firms like Fauji Fertilizers, Nestle Pakistan, Habib Bank Limited and many others. Pakistani enterprises are experiencing significant business disruptions as a result of the COVID-19 epidemic and lockdowns.
The immediate consequences of COVID-19 include deaths and injuries, supply disruptions, property destruction, and inventory losses. The indirect relationship, on either extreme, comprises threat to property infrastructure such as electrical supply, communication and transportation systems, and roadways, which leads to increased manufacturing costs and even economic disruption. Due to lack of opportunities because of the outbreak of COVID-19, there has been a social crisis that will be felt for years. This factor does not only cause layoffs but also inequalities among the different cultures and societies of Pakistan.
Furthermore, given the absence of adequate government assistance, most of the enterprises experience financial deterioration and often go bankrupt. Enterprises have little finances and capabilities to rehabilitate from such crises, particularly those functioning in rural areas of developing Countries like Pakistan, which has high levels of poverty as well as economic and political insecurity. As a result, we must focus on examining the impact of COVID-19 and making policy suggestions for the viability of enterprises in Pakistan.