Impact of Corona Virus

The outbreak of coronavirus disease (COVID-19) has severely affected the global and Pakistani economy. Major victims of the COVID-19 outbreak are micro, small, and medium-sized enterprises (MSMEs). This article aims to assess the impact of COVID-19 outbreak on these businesses and provide policy recommendations to help MSMEs in reducing business losses and survive through the crisis. We adopted an exploratory methodology with comprehensively reviewing the available literature, including policy documents, research papers, and reports in the relevant field. Further, to add empirical evidence, we collected data from 184 Pakistani MSMEs by administering an online questionnaire. The data were analyzed through descriptive statistics. The results indicate that most of the participating enterprises have been severely affected and they are facing several issues such as financial, supply chain disruption, decrease in demand, reduction in sales and profit, among others. Besides, over 83% of enterprises were neither prepared nor have any plan to handle such a situation. Further, more than two-thirds of participating enterprises reported that they could not survive if the lockdown lasts more than two months. The findings of our study are consistent with previous studies. Based on the results of the research, different policy recommendations were proposed to ease the adverse effects of the outbreak on MSMEs. Although our suggested policy recommendations may not be sufficient to help MSMEs go through the ongoing crisis, these measures will help them weather the storm.

The outbreak of coronavirus disease-20191 (COVID-19) has severely affected national and global economies. Various enterprises are facing different issues with a certain degree of losses. Particularly, enterprises are facing a variety of problems such as a decrease in demand, supply chain disruptions, cancelation of export orders, raw material shortage, and transportation disruptions, among others. Nevertheless, it is quite clear that enterprises around the globe are experiencing the significant impact of COVID-19 outbreak on their businesses. We argue that major victims of COVID-19 outbreak are the micro, small & medium-sized enterprises (MSMEs) because MSMEs, in comparison to large enterprises, usually do not possess sufficient resources, especially financial and managerial, and are not prepared for such disruptions likely to go longer than expected (Bartik et al., 2020Prasad et al., 2015). Additionally, these firms are highly dependent on their routine business transactions and a small number of customers (Williams & Schaefer, 2013). Hence, many MSMEs are running out of stock, some hardly continue to operate, and some will be running out of stock soon.

MSMEs are the backbone of many economies worldwide that provide income and employment generation to a large number of people around the globe. Similarly, in the case of Pakistan, MSMEs2 are crucial for the economy as they constitute over 90% of the estimated 3.2 million business enterprises and contribute 40% to the GDP with over 40% to export earnings (SBP, 2016Shah, 2018). These businesses are spread all over Pakistan in rural and urban areas and represent a significant portion of agriculture, manufacturing, retail, wholesale, trade, and service sectors. Due to the COVID-19 outbreak and lockdowns, Pakistani firms are facing unprecedented adverse effects on their businesses.

According to a recent report of the United Nations Conference on Trade and Development (UNCTAD) (UNCTAD, 2020a), Pakistan would be hardest-hit by the global pandemic of COVID-19. Therefore, this justifies the need to examine the impact of the COVID-19 outbreak on MSMEs operating in Pakistan. Additionally, the ongoing pandemic crisis will severely hamper the operations of these businesses because MSMEs are highly dependent on the cash economy, which has been adversely affected by the pandemic (Williams & Schaefer, 2013). Besides, the unavailability of labors, slowdown of productions, shortage of raw materials, and transportation restrictions will have major ramifications on these businesses. This, in turn, will have a significant impact on the national economy as a whole. Hence, a robust policy response is also essential to offset the negative effects of the current outbreak. Till to date, no study has been conducted to examine the global outbreak’s impact on MSMEs operating in Pakistan. Thus, this research aims to investigate the impact of the COVID-19 outbreak on Pakistani MSMEs. Our study also aims to assist policymakers and practitioners in identifying strategies required to respond to the impact of the ongoing pandemic on MSMEs. Mainly, this study emphasizes to pay more attention to the huge risks brought by external environmental uncertainty to MSMEs and help these enterprises in predicting risks in the early stage of business decision-making and planning, and specify countermeasures.

The remaining part of the paper is as follows. Section 2 briefly discusses the impact of the external environmental crisis caused by natural disasters, including floods, earthquakes, and epidemic diseases on commercial enterprises. Section 3 provides a brief overview of the situation of COVID-19 globally and in Pakistan. In Section 4, we discuss the impact of the ongoing outbreak on global and Pakistani economy. Section 5 represents the methodology adopted in this study. Section 6 is dedicated to discussing the findings of the study, followed by policy recommendations in Section 7. Finally, Section 8 discusses the conclusions.


Many external environmental crises had occurred in the past that have severely affected MSMEs globally such as 1953 great floods in Holland, 2005 Hurricane Katrina, 2011 floods in Thailand, 2011 Great East Japan Earthquake, 2011 Japan Tsunami, and Hurricane Harvey 2017 among others. Further, besides COVID-19, many epidemic outbreaks had occurred globally such as SARS, MERS, Swine flu pandemic (2009 H1N1), 2014 Ebola outbreak, Avian influenza, Salmonella Infantis outbreak, ZIKA outbreak among others (Auzzir et al., 2018Eggers, 2020Kim et al., 2020). These crises have a significant impact on the society, economy and MSMEs; moreover, these events not only cause economic losses but also create a severe threat to business continuity. Further, Prasad et al. (2015) argue that due to natural disasters, the disruption of supply chain occurs globally, and in case of significant disruptions, the MSMEs enterprises are adversely affected even if they are not directly affected by a disaster.

External environmental crisis such as earthquake, flood, epidemic diseases and other issues adversely affects business activities and their survival (Asgary et al., 2020Eggers, 2020Prasad et al., 2015Samantha, 2018). Moreover, since MSMEs are financially fragile, smaller in size and resources, they are more vulnerable to the environmental crisis than their counterparts, i.e. large enterprises (Asgary et al., 2020Bartik et al., 2020Eggers, 2020Prasad et al., 2015Samantha, 2018Williams & Schaefer, 2013). The external environmental crisis can affect MSMEs directly or indirectly. The direct impact includes fatalities, supply chain disruptions, property damage, and loss of inventories. In contrast, the indirect effect includes damage to public infrastructure such as electricity supply, communication and transportation system, and roads leading to increase in production cost and even business discontinuity (Asgary et al., 2020Eggers, 2020Hallegatte, 2015Samantha, 2018World Trade Organization, 2019). According to the World Trade Organization (2019), since 1998 to 2017, the number of natural disasters has increased tremendously. During the above period, a total of $2.9 trillion direct economic losses have been reported by disaster-hit countries. Further, concerning disaster loss statistics from 1998 to 2017, the U.S. is the most affected ($945 billion) followed by China, Japan, the European Union, India (World Trade Organization, 2019) and Pakistan (Ahmad & Afzal, 2020Ahmad & Ma, 2020Hussain et al., 2019).

Several studies have reported devastating effects of such events on MSMEs. For instance, the 1999 earthquake in Turkey severely affected MSMEs with damages estimated $1.1–4.5 billion (Asgary et al., 2020). Similarly, the 2011 flooding in Thailand affected at least 557,637 enterprises, along with 2.5 million job losses, and 90% of these firms were MSMEs (Auzzir et al., 2018). Likewise, in Malaysia, due to unprecedented flooding at the end of 2014, more than 13,000 SMEs were affected (Auzzir et al., 2018). Further, Samantha (2018) reported that in May 2016, a tropical storm severely hit western parts of Sri Lanka, which causes huge damage to society, public property and MSMEs. Many developed countries have also experienced similar disastrous effects on MSMEs. For instance, SMEs in the U.K. during the 2001 Foot and Mouth Disease (FMD) outbreak, suffered from huge losses, particularly, the non-farming losses were estimated to be 5 billion pounds (for further details, see Bennett & Phillipson, 2004).

In a similar vein, Pakistan has also experienced such a devastating crisis caused by external environmental disasters. For instance, floods in 2010 affected not only public and private property but also crops with a loss of $4.5 billion (World Trade Organization, 2019). Pakistan has also witnessed several similar crises in past such as climate change, 2005 and 2008 earthquakes, droughts in 1998 and 2004, etc. (Ahmad & Afzal, 2020Ahmad & Ma, 2020Hussain et al., 2019). Moreover, recently in 2015, nearly all main types of natural disasters such as earthquake, drought, flood, heatwave, and cyclone, were faced by Pakistan (Hussain et al., 2019) that severely affected many businesses.


At the end of December 2019, an outbreak of pneumonia of unknown etiology was reported, later the cases were proved to be caused by a novel coronavirus disease (COVID-19) which spread very rapidly (WHO, 2020b). World Health Organization (WHO) soon realized the severity of the situation and declared a “public health emergency of international concern” on 30 January 2020 (WHO, 2020d). Within a short period, the reported cases grew exponentially all over the world; as a result, the WHO declared COVID-19 a “pandemic” on March 11, 2020 (WHO, 2020c). Still, after more than six months, the number of confirmed and death cases are growing rapidly globally. As of July 19, 2020, WHO reported 14,043,176 confirmed cases in 216 countries with 597,583 deaths (WHO, 2020a).

The first case of COVID-19 in Pakistan was reported on February 26, 2020. From March 15, 2020, the number of confirmed cases has started rising rapidly due to the arrival of pilgrimage from Iran through Taftan Border. Moreover, the announcement and enforcement of lockdown in Pakistan was made in less than a day, creating turmoil as migrants3 rushed to return to their hometowns, thereby aggravating crowding and preventing social distance impossible (World Bank, 2020b). Further, from March 15–25, 2020, the cases jumped from 53 to 1078 (DAWN, 2020). Since then, the cases are growing exponentially day-by-day in different parts of the country. As of July 20, 2020, a total of 265,083 confirmed cases have been reported in Pakistan, out of which 5599 individuals have died so far (COVID-PAK, 2020). The current data shows that 42.63% (113,007) of confirmed cases are reported in Sindh province alone followed by Punjab province with 34.02% (90,191). Fig. 1 represents the province wise confirmed cases in Pakistan.

Further, several businesses, due to their small size and resources constraints do not reach to the post-disaster stage (Samantha, 2018). Moreover, due to the lack of sufficient governmental support, most MSMEs face financial decline and even go bankrupt. MSMEs have limited capability and resources to recover from such crisis, especially those operating in developing countries like Pakistan with high poverty rate, economic and political instability. Therefore, this study moved its foundation to examine the impact of COVID-19 and suggest policy recommendations for the survival of MSMEs in Pakistan.


22,263 thoughts on “Impact of Corona Virus

  1. Pingback: cialis pills
  2. Pingback: ed med
  3. Pingback: buy cialis euro
  4. My programmer is trying to persuade me to move to .net from PHP.
    I have always disliked the idea because of the expenses.
    But he’s tryiong none the less. I’ve been using WordPress on various websites for about a year and am worried about switching to
    another platform. I have heard good things about
    Is there a way I can import all my wordpress posts into it?
    Any help would be really appreciated!

  5. Superb blog! Do you have any helpful hints for aspiring writers?

    I’m planning to start my own site soon but I’m a little lost on everything.
    Would you propose starting with a free platform like WordPress or go for
    a paid option? There are so many choices out there that I’m completely overwhelmed ..
    Any recommendations? Appreciate it!

  6. Attractive component of content. I just stumbled upon your site and
    in accession capital to claim that I get in fact enjoyed account your weblog posts.
    Any way I will be subscribing to your augment and even I achievement you access constantly fast.

  7. Hey! I know this is kinda off topic however I’d
    figured I’d ask. Would you be interested in trading links or maybe guest writing a blog article or vice-versa?
    My website addresses a lot of the same subjects as yours and I believe we could
    greatly benefit from each other. If you are interested feel free to shoot me an e-mail.
    I look forward to hearing from you! Excellent blog by the way!

  8. Having read this I believed it was really enlightening.
    I appreciate you spending some time and effort to put this
    informative article together. I once again find myself personally spending way too much
    time both reading and posting comments. But so
    what, it was still worthwhile!

  9. Thanks for the marvelous posting! I quite enjoyed
    reading it, you may be a great author. I will
    ensure that I bookmark your blog and definitely will come back later in life.
    I want to encourage you continue your great job, have a nice day!

  10. Heya fantastic blog! Does running a blog such as this take a massive amount work?
    I’ve very little understanding of computer programming but I was hoping to
    start my own blog in the near future. Anyways, should you have any
    recommendations or techniques for new blog owners please share.
    I understand this is off topic however I just wanted to ask.


  11. Greate article. Keep writing such kind of info
    on your blog. Im really impressed by it.
    Hello there, You have performed a great job. I will certainly digg it and in my view recommend
    to my friends. I am confident they’ll be benefited from this site.

  12. I loved as much as you will receive carried out right
    here. The sketch is tasteful, your authored subject matter
    stylish. nonetheless, you command get got an shakiness over that you wish be delivering the following.
    unwell unquestionably come further formerly again since exactly the same nearly a lot often inside case you
    shield this hike.

  13. Pingback: cialis 20 mg
  14. I really love your blog.. Very nice colors & theme. Did you make this website yourself?
    Please reply back as I’m attempting to create my own personal blog and would love to know where you
    got this from or what the theme is called. Kudos!

  15. This is really amazing information. I follow you and your blog constantly. A very successful and effective blog site.

  16. Howdy! Quick question that’s completely off topic. Do you know how to make your
    site mobile friendly? My web site looks weird when browsing from my apple
    iphone. I’m trying to find a template or plugin that might
    be able to resolve this problem. If you have any suggestions, please share.

  17. Please let me know if you’re looking for a writer for your
    weblog. You have some really great posts and I feel I would be a good asset.
    If you ever want to take some of the load off, I’d really like to write some content for your blog in exchange for a link back to mine.

    Please send me an email if interested. Kudos!

  18. Do you mind if I quote a few of your posts as long as I provide credit and
    sources back to your site? My website is in the exact same
    niche as yours and my visitors would definitely benefit from some of the information you present here.
    Please let me know if this ok with you. Regards!

  19. I think what you said was actually very logical. But, think about this, what if you wrote a catchier title?

    I ain’t saying your information isn’t good, however
    what if you added a headline that makes people want more?
    I mean Impact of Corona Virus is kinda vanilla.
    You ought to peek at Yahoo’s home page and watch how they
    write post headlines to grab viewers to open the links.
    You might add a video or a related pic or two to get people interested about everything’ve
    written. Just my opinion, it could make your website
    a little bit more interesting.

  20. It is appropriate time to make a few plans for the future
    and it is time to be happy. I have learn this put up and if I may I desire to suggest you few interesting things or advice.

    Perhaps you can write subsequent articles regarding this article.
    I want to read more things about it!

  21. Pingback: 75 mg sildenafil
  22. Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something.
    I think that you could do with a few pics to drive the message home
    a bit, but instead of that, this is excellent
    blog. A great read. I’ll certainly be back.

  23. I’ve been surfing online more than 3 hours lately, yet I never discovered any
    fascinating article like yours. It is lovely worth enough for me.
    In my view, if all site owners and bloggers made good content material as you
    probably did, the net shall be much more helpful than ever before.

  24. Greetings from Florida! I’m bored at work so I decided to check out your website on my iphone during lunch break.
    I enjoy the information you present here and can’t wait to take a look when I get home.
    I’m shocked at how fast your blog loaded on my cell phone ..
    I’m not even using WIFI, just 3G .. Anyhow,
    amazing site!

  25. Предлагаем купить тренажер для кинезитерапи рег.Однако не все люди могут свободно двигаться.Ремни для миостимулятора 3в1.и со шведской стенкой.Доставка осуществляется по всей Украине транспортными службами, действующими на территории страны.
    Бубновского тренажер акционная цена от легендарного завода реабилитационных тренажеров для центров кинезитерапии . Производитель спортивных товаров доставку осуществляет к Вам домой по всей Украине : Житомир , Киев , Кропивницкий , Одесса , Тернополь , Харьков , Черкассы курьерской компанией Украинская почтовая группа или транспортом завода без предоплаты в течении 1-4 дней после заказа. Стоимость доставки 425 грн.

  26. Pingback: cild porn
  27. Pingback: child porn
  28. Pingback: child porn
  29. Pingback: madridbet
  30. Pingback: meritking
  31. Pingback: eurocasino giriş
  32. Click 1here to see how to get free diamonds on cooking fever

    Cooking Fever is a lot more fun when you have as many gems as you want.If you love phone games like this you ought to check out this guide

  33. I like the valuable info you provide in your articles.
    I will bookmark your blog and check again here frequently.
    I am quite certain I will learn lots of new stuff right here!
    Good luck for the next!

  34. See 1more about how to get diamonds on cooking fever

    The game is a lot more fun when you have as many diamonds as you want.If you enjoy mobile games like this you should check out the guide above

  35. Pingback: meritroyalbet
  36. It seemed like a Japanese porn scene. – filipina model nude They share DVDs at no cost, well maybe it is not completely free, why? Because, they don’t keep their files inside their servers, but as an alternative of that, they maintain then on and exterior hosting platform.

  37. Hey there would you mind sharing which blog platform you’re using?
    I’m going to start my own blog soon but I’m having a hard time selecting between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your layout seems different then most blogs and
    I’m looking for something unique. P.S My apologies for being off-topic but I had to ask!

  38. I’ve been browsing online greater than three hours today, but I
    never discovered any interesting article like yours.

    It’s lovely value enough for me. Personally, if all webmasters and bloggers made just right content as you probably
    did, the internet will likely be a lot more useful than ever before.