Impacts of Covid-19 on Pakistan’s Economy: Challenges, Opportunities, and Policy Options

Abstract

Throughout history the world has witnessed several pandemics. Corona virus pandemic was the first pandemic of 21st century. It has jolted the world economy. This research examines the impact of COVID-19 on economy of Pakistan by applying complex interdependence theory. The research addresses the question that What economic opportunities and challenges are the outcomes of Covid-19 pandemic for Pakistan and what policy options will help Pakistan to deal with emergency situations like Covid-19 pandemic. Data collection is done through secondary sources. The research methodology used in this research is qualitative. This research has found that economic impact of Covid on Pakistan was dreadful. Government of Pakistan inaugurated relief packages to help the poor people and small businesses. Pakistan faced numerous challenges like rise in unemployment, supply chain disruptions, retention of portfolio investment as the outcome of the spread of Covid. Some opportunities also emerged like boom in IT sector, business opportunity, migration of workers. Pakistan needs to review its economic policies and improve to deal with emergency situations like pandemic in future. The research concludes that Pakistan tried its best to face pandemic, but its consequences will last for a long- time and government needs to rebuild policies by correcting the flaws in them.