PANDEMIC-RELATED FINANCIAL RISKS IN DIFFERENT SECTORS: A COMPARATIVE STUDY OF COVID-19 IMPACT ON TEXTILE AND AGRICULTURE SECTORS IN PAKISTAN

Abstract

In this research the fiscal implications of the current COVID-19 pandemic on Pakistan’s textile and agricultural sectors are analysed quantitative method was being used in the study. For analysing the performance of different sectors the pre and post the pandemic financial statistics of leverage, liquidity and profitability were compared. The textile sector once again improved its profitability and liquidity contrary to the agriculture industry which despite improvements in equity and asset returns could not manage its debts and liquidity as effectively. The results of correlation analysis on debt, leverage and profitability indicators showed moderate and highly significant relations between them. Thus, the public COVID-19 report pointing at the differential impact of the pandemic on these essential industries can be beneficial for stakeholders and governments as it provides insights about how to minimize their financial losses and risks.