Flaring up from China, the Coronavirus epidemic is now spreading across the world. Just recently two cases of Coronavirus are reported in Pakistan as well. It is said that this would likely to have a detrimental impact on Pakistani businesses as the epidemic has made its presence felt in the global markets.
The outbreak of Covid-19 or Coronavirus in Pakistan will complicate the recovery process of the country's economy amid inflationary burdens and supply chain disturbance.Businesses in Pakistan are getting heavily impacted as imports with neighboring countries especially China and Iran are disrupted.
Many stakeholders and economists believe that the overall alarming situation of stock markets, shrinking global economies and unsettling oil prices will further weaken the economy of Pakistan as well. After the confirmation of two Coronavirus cases in the country, Pakistan Stock Exchange (PSE) lost 1,002 points and showed a bearish trend today.On the other hand, one positive side of this whole scenario is that Pakistani businesses are receiving massive textile orders primarily home textiles and denim from USA and Europe.
This is because the worldwide textile producers are expecting an interruption in the supply chain as China is the prominent part of textile production globally. Though, being considered a golden opportunity for businesses in Pakistan to grab a significant share in the international market, the business sector in the country is already facing a number of challenges such as shortage of supply chain and rising energy tariffs.
Unless a solid supply chain is established, the businesses in Pakistan cannot benefit from the present opportunity and improve the exports in the country.Currently, Pakistani business circles are in a disorienting situation. Some businesses are searching for alternatives to China for buying their merchandise and raw material, regardless of the huge differences in prices as the media reports rising global anxieties due to Coronavirus threat. However, efforts are being made to minimize the slump in the retail market, attaining the market shares and running the manufacturing smoothly.