Socio-economic effect of COVID-19 on Governance

 There is no denying the fact that the coronavirus has opened a

new chapter of economic hardship for countries all over the
world. Yet it will be the developing countries that will be the most
affected by the catastrophe. 
 Then came Covid-19, triggering lockdowns across Pakistan. These
lockdowns have created lots of socio-economic problems.
 A new World Bank report presents an alarming economic outlook
for the region in the midst of a crisis that could result in the worst
economic performance of the last 40 years.
 According to the report, regional growth could fall to anywhere
between 1.8pc and 2.8pc in 2020, down from 6.3pc projected six
months ago. In the worst-case scenario, the whole South Asian
region can experience a contraction in its GDP.
 Pakistan is estimated to have faced an economic loss of up to
Rs2.5 trillion because of the Covid-19 pandemic in the current
fiscal year and government figures project that around three
million jobs are expected to be lost in the "initial round" of the
novel coronavirus outbreak.
 The consequences of the lockdown and the declining business
activities have already started to surface in shape of an economic
crisis. Around 40 % of Pakistan’s population was already living
below the poverty line before it was hit by the COVID-19.
 Exporters from Pakistan are unable to process their orders and
the payments from previous orders have also been halted in most
cases as businesses abroad, mostly in Europe and the U.S have
been shut down. Movement of goods and cargo is also blocked
making it extremely difficult to maintain the flow of business.
Asian development outlook April 2020
 The poor population also includes informal workers, who make up
73 % of the country’s 65 million labour force.
 These undocumented, informal workers have been hit hard by the
lockdown, as they depend on daily wages or piece rate earnings -
paid when the work is done. They have lost jobs and earnings and
have little to eat.
 Pakistan’s already small export of 20 billion dollars with Europe
has declined to half, and all local businesses except a few
exceptions are shut down.
 A new survey suggests that 51 % of Pakistanis may lose their jobs
in the coming months. 
 Since the outbreak of the virus and subsequent lockdown, all
schools, colleges and universities are closed in Pakistan. This is
quite tough time for educational institutions as they have to meet
their expenses, pay rents, give salaries and bear other necessary
expenses.