COVID-19 in Pakistan: How to Spark the Economic Recovery-Analysis from Previous Natural Disasters

Abstract

COVID-19 is reshaping the future of the globe by having an unprecedented impact on people's social, political, and economic lives. This pandemic is being characterized by health crisis as well as economic crisis. Pertaining to the negative demand & supply shocks and the decrease in revenues, profits, and investment due to COVID-19, many business and economic institutions are paying heed to subdue the post-pandemic economic recession. The COVID-19 pandemic crisis also hit the economy of Pakistan rigorously. Due to persistent lockdown and de-escalated economic activities, the country faced a sharp decline in tax revenues, investment, and business growth. Pakistan has faced several economic downturns due to natural disasters: particularly the flood in 2010 and the earthquake in 2005, as they caused the loss of numerous lives, infrastructure, businesses, and irrigation land. The present study reviews the response and effectiveness of government and different institutions in previous natural disasters. This analysis provides policy recommendations to deal with the current crisis. The study concludes that Pakistan failed to get the full output of its recovery plans due to lack of preparedness & coordination, lack of understanding, insufficient knowledge & planning, the ineffective role of central management, and other institutional or management issues. It further recommends that Pakistan should act more effectively against natural disasters and restore its previous economic pace by eliminating the gaps in its economic and disaster management policies.