Pandemic, Economy and Response Mechanism: An overview

Abstract

This policy review presents an overall overview of COVID-19 pandemic impact on health and economy in developed and developing countries. Besides, it highlights the key responses and measures taken so far to control the spread of the diseases. The COVID-19 pandemic seems to impact economy so hard that the global growth could be as low as 2%, along with drop in trade from 13% to 32%. In the US only, 22 million people applied for unemployment benefits. In Europe, services sector has crashed as lockdowns caused businesses closures. Similarly, Spain, France, and Germany have all recorded the lowest readings in their business surveys. In Pakistan, more than 25% of the population lives below the poverty line; it is estimated that poverty shall increase from 75 million to around 130 million in case of protracted lockdown. Moreover, the absence of universal health coverage may also force people to sell their possessions or get loans from informal moneylenders at manipulative rates. In this chaotic situation, the government should allocate more money for its health budget. Pakistan should take steps towards practical policies to tackle the further impact of COVID-19. Pakistan should keep digital database of all sorts of labourers (formal and informal) as it will help the government reach the poor and needy segments of the communities on time.