Comparative Case Study of Pakistan & Malaysia

Covid-19 Economic Impact, National Support Package and

Economic Revival
INTRODUCTION

The article is about the social-economic condition of Malaysia and Pakistan during the
pandemic situation of Covid-19. IN this article we discussed about the social aspects and the
economics aspects of Covid-19 in the society of Pakistan and Malaysia that how the economic
conditions of the countries have been disturbed due to this pandemic situation and what
measures does the governments have taken to overcome this unusual and abnormal situation.
It has damaged the world economy and the 3 rd world countries or developing countries like
Pakistan has also been damaged and the economic conditions are getting worst due to the
pandemic as in Pakistan the major sector of businesses have been covered by small businesses,
SMEs which are unable to bear such a heavy burden of disturbed economy[ CITATION Moh20 \l
1033 ].The lack of specialize and well equipped government dispensaries and other lifesaving
equipment, proper PPEs for the doctors and the paramedical staffs are also not available as per
the required quantity and quality. The efforts of government to overcome this pandemic
situation is also been highlighted in the study[ CITATION AWa20 \l 1033 ]. The Malaysian
market scenario has been discussed as the disturbed supply chain cycle has affected the cost of
the product and prices have been shoot upward due to which the consumers have stopped
spending money rather than necessity items.[ CITATION Pet20 \l 1033 ].

LITRATURE REVIEW

Impact on Pakistan’s GDP:

The impact of the Covid-19 on the GDP of Pakistan is that According to reports, due to the
COVID-19 outbreak and blockade, Pakistan has lost a third of its revenue and exports have
fallen by 50%. Economists warn that Pakistan's virus blockade has caused economic recession [
CITATION Has20 \l 1033 ]. Due to the ongoing crisis caused by the COVID-19 pandemic, and
due to the sudden slowdown of national and global economic activities in the last few months
of this fiscal year, Pakistan’s real GDP growth in fiscal year 20 is expected to shrink by 1.3% and
In addition, if the COVID-19 outbreak worsens and lasts longer than expected, Pakistan’s real
GDP growth rate may shrink by 2.2% in FY20 before returning to its 0.3% growth in FY21
[ CITATION Wor20 \l 1033 ].

Impact on Malaysia’s GDP:

The impact of Covid-19 on the GDP of Malaysia is that the gross domestic product (GDP) is
expected to fall to between -2.0% and 0.5% in 2020, compared with 4.3% last year. Due to the
COVID-19 crisis, Malaysia Visit 2020 (VM2020), which aims to attract 30 million tourists, has
also been cancelled. What is concerning is that Malaysia’s tourism industry is the main source
of foreign exchange in the national economy. The tourism industry contributes more than 50%
to export trade-in services. Approximately 27 million tourists visit Malaysia each
year[CITATION Sad20 \l 1033 ].

COMPARISON
Below is the table of comparison for Malaysia and Pakistan [ CITATION Geo20 \l 1033 ].
Stat Malaysia Pakistan
GDP $358.6B $314.6B
GDP growth, 1 year 4.70% 5.20%
GDP growth, 5-years average 5.20% 4.70%
Population 31.6M 197M
GDP per capita $11k $1.5k
GDP per capita growth 3.33% 3.68%
Purchasing Power Parity conversion
1.44 29.3
factor
Price level ratio of PPP conversion
0.36 0.27
factor GDP to market exchange rate
GDP per capita, PPP adjusted $31k $5.7k
GNI, Atlas method $333.8B $337.1B
GNI per capita $11k $1.6k
GNI, PPP adjusted $966.3B $1.2T
GNI per capita, PPP adjusted $31k $5.9k

CONCLUSION:

The study show that the impact of Covid-19 on the economic conditions of both the countries.
We found that due to the COVID-19 outbreak and lockdown, many MSMEs were severely
affected. As a result, these businesses face various problems, such as finance (67.93%), supply
chain disruption (47.83%), decline in demand (44.02%), and decline in sales and profits (38.04%,
41.85%, respectively)[ CITATION Moh20 \l 1033 ]. To deal with Covid-19, we need to take
precise measures to solve the problems caused by this emerging crisis-there is no “one-and-for-
all solution”[ CITATION Has20 \l 1033 ].

The BNM Bank stated that the policy measures adopted by the government will provide a
buffer for economic activity this year and avoid a sharp economic contraction. The government
launched the first RM20 billion stimulus plan in February to ease cash flow restrictions on
businesses, provide financial assistance and training, and stimulate investment. [ CITATION
Ber20 \l 1033 ]