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Pakistan’s small businesses hit hard by COVID-19

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Small businesses in Pakistan have been adversely affected by the Covid-19 pandemic. The low demand at home, disruptions in supply chains, constraints in international trading, and expected prolonged lockdowns are now leading to severe cash flow problems, the inability to pay back debts and cancellation of orders from clients. 

This rising uncertainty is gradually leading them to lay off employees which will have welfare implications. In some sectors where recovery is difficult to predict, small businesses have started planning for the worst: complete shutdown. This crisis could also imply a much bleaker outcome for the startup ecosystem in Pakistan.  

The government has announced a SME relief package. The central bank has also come forward to relieve some of the funding and finance related concerns of private enterprises. Yet, many micro and small businesses do not understand how to apply or if they are eligible, to receive such assistance. There are others who argue that this one off relief may not be enough given that businesses are going to face depressed demand for a longer term. Pakistan’s past record of small businesses trying to access such fiscal packages is also not encouraging, partly because many such firms do not access formal banking channels for their needs or banks impose steep collateral requirements. Also, large segments of micro enterprises have the entire or some components of their businesses in the informal sector.

Federal and provincial governments have two issues to address now: how to ensure that small businesses are able to access and utilize existing government-provided assistance, and secondly, what more can be done to support private enterprise in these times.

A progressive fiscal policy and commitment to redistributive taxation is in line with the spirit of Riasat-e-Madinah to which Prime Minister Imran Khan often refers to. A sincere effort is required to reduce the burden of compliance costs faced by small firms- often filing returns several times during a year and to multiple tax bodies across the country. 

Dr. Vaqar Ahmed

On the former, it would be best to start by addressing information and outreach gaps. As the problems for businesses are evolving in real-time, hence there remains a need for structured and more frequent public-private dialogue which should be inclusive enough to also give representation to women, youth-led firms and social enterprises. Such a dialogue will also give a sense to the government about how these businesses will get affected in the forthcoming rounds of Covid-19.

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On the latter, I believe the forthcoming budget for the fiscal year 2020-21 should be seen as an opportunity not only to provide support to collapsing businesses but also to put in place economic incentives that encourage enterprises to consider resilient business models. A large part of this has to do with reimagining a better taxation regime.

A progressive fiscal policy and commitment to redistributive taxation is in line with the spirit of Riasat-e-Madinah to which Prime Minister Imran Khan often refers to. A sincere effort is required to reduce the burden of compliance costs faced by small firms – often filing returns several times during a year and to multiple tax bodies across the country. It is an opportunity now to automate, rationalize or eliminate several filing and payment layers in taxation to ultimately help reduce the cost of doing business.

After a lot of persuasion from local think tanks and the International Monetary Fund (IMF), federal and provincial governments agreed to establish a National Tax Council (NTC) to harmonize the general sales tax (GST). 

Currently all provinces have a different structure of GST on services. There are also issues regarding definition of certain activities which the federal government may assume to be under its jurisdiction. Perhaps smaller firms have been the hardest hit due to the fragmented tax structure across the federation and it is time now to expedite NTC’s establishment and work in this direction. Even when the system is finally harmonized, the GST should not be collected by multiple windows at federal and provincial levels. A unified tax return and collection should be made possible through online mechanisms.

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It will also be timely to think about which sectors should be motivated to scale up production and services in the face of this health-related emergency. Hospitals and private clinics operating at micro, small, and medium scale are primary candidates for cut in GST on services and even rationalization in direct tax rates. Firms producing personal protective equipment should also see a relief in taxes. The trade taxes faced by such producers or even hospitals importing from abroad need to be revisited. The agro-based and food processing enterprises will need similar help as their input supplies face price and supply volatilities.

Covid-19 also increased demand on several other sectors providing essential services. Our policy circles have rarely seen these sectors as important for the social and mental wellbeing of society until the pandemic struck. It will now be timely to recognize the services of firms (including schools) providing online services. The economic policy managers must think out of the box how best to leverage e-commerce in the battle against Covid-19. 

– Dr. Vaqar Ahmed is an economist and former civil servant. He is author of ‘Pakistan’s Agenda for Economic Reforms’ published by the Oxford University Press. Twitter: @vaqarahmed

Courtesy : ArabNews

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Analysis

Anti-Vaxxers Highlight Political Polarization in North America

Introduction: The Growing Divide The rise of anti-vaccine sentiment in North America has exposed a deep-seated and concerning divide within society, one that transcends the realm of science and health. This ideological schism not only jeopardizes public health but also underscores the intensifying political polarization in the region. Examining this issue from an analytical perspective, […]

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anti-vaccine sentiment

Introduction: The Growing Divide

The rise of anti-vaccine sentiment in North America has exposed a deep-seated and concerning divide within society, one that transcends the realm of science and health. This ideological schism not only jeopardizes public health but also underscores the intensifying political polarization in the region. Examining this issue from an analytical perspective, it becomes evident that anti-vaxxers are symptomatic of broader political, social, and cultural divisions that demand serious attention.

I. The Genesis of Anti-Vaccine Sentiment

Anti-vaccine sentiment in North America is not a new phenomenon. It traces its origins to a complex interplay of factors, including historical vaccine hesitancy, mistrust in government institutions, and the proliferation of misinformation through digital media. Understanding the historical context of vaccination resistance is crucial to addressing the issue effectively.

II. The Role of Political Ideology

One of the striking aspects of the anti-vax movement is its close association with political ideology. Research indicates that vaccine hesitancy is not evenly distributed across the political spectrum. Conservatives, particularly in the United States, are more likely to express scepticism about vaccines. This alignment raises important questions about the intersection of political beliefs and public health.

III. The Influence of Media Ecosystems

The media landscape plays a pivotal role in shaping public opinion, and anti-vaxxers have effectively utilized it to spread their message. The proliferation of echo chambers and algorithm-driven content on social media platforms has allowed misinformation to thrive. A critical analysis of the media’s role in perpetuating vaccine scepticism is essential.

IV. The Distrust of Institutions

The erosion of trust in public institutions, including healthcare agencies and government bodies, has contributed to the rise of anti-vaccine sentiment. Scepticism towards these entities has fostered a climate of uncertainty, which anti-vaxxers have skillfully exploited. A closer look at this crisis of confidence is necessary for finding long-term solutions.

V. The Influence of Celebrity Advocacy

Celebrities have emerged as influential figures in the anti-vax movement, leveraging their status and platform to amplify vaccine scepticism. The public’s susceptibility to celebrity endorsements and their impact on vaccine uptake must be analyzed to better understand how misinformation spreads.

VI. The Globalization of Vaccine Hesitancy

Anti-vax sentiment is not confined to North America. It is a global issue with varying degrees of impact in different regions. Understanding the transnational nature of this problem and how it interacts with local dynamics is essential for comprehensive solutions.

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VII. The Role of Education and Health Literacy

The quality of education and health literacy also play a significant role in vaccine hesitancy. Analyzing the disparities in access to quality education and healthcare, and their impact on vaccine attitudes, is crucial for developing targeted interventions.

VIII. The Challenge for Public Health

Public health officials and healthcare providers face a formidable challenge in countering anti-vax sentiment while respecting individual autonomy. Striking the right balance between public safety and personal choice requires careful consideration and a multifaceted approach.

IX. Bridging the Divide: A Way Forward

Addressing the political polarization and anti-vaccine sentiment in North America requires a multi-pronged approach. Strengthening trust in institutions, improving media literacy, promoting science-based education, and fostering open dialogues are essential steps toward finding common ground.

Conclusion: A Shared Responsibility

The issue of anti-vax sentiment is symptomatic of the deep political polarization in North America. Tackling this issue requires a collective effort from all sectors of society. While public health authorities play a vital role, individuals, communities, media outlets, and policymakers must come together to bridge this divide and protect public health. Failure to do so not only jeopardizes our ability to control infectious diseases but also weakens the social fabric that binds our diverse and vibrant continent together.

FAQs

1. Are anti-vaxxers the new pariahs?

The term “pariah” suggests an outcast or someone marginalized by society. While it may be too strong a term to universally label all anti-vaxxers, it’s undeniable that they face increased scrutiny and criticism due to their stance on vaccines. Anti-vaxxers are often met with scepticism and even ostracism by those who believe in the importance of vaccinations. The negative attention they receive stems from concerns about public health and their role in spreading misinformation. Still, it’s essential to engage with anti-vaxxers in a constructive manner to address their concerns rather than alienate them further.

2. Have conservatives always been anti-vaxxers?

No, conservatives have not always been anti-vaxxers. While there is a correlation between vaccine hesitancy and some conservative political ideologies in recent years, it’s important to avoid making sweeping generalizations. Vaccine hesitancy is a complex issue influenced by various factors, including historical context, misinformation, distrust in institutions, and individual beliefs. Conservative individuals, like those from other political backgrounds, have a diverse range of views on vaccines. Public health is a matter that should transcend political lines, and addressing vaccine hesitancy requires understanding its multifaceted causes.

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3. What are your thoughts on COVID anti-vaxxers?

COVID-19 vaccine hesitancy, like vaccine hesitancy in general, is a cause for concern. Widespread vaccination is crucial for achieving herd immunity and effectively managing the pandemic. COVID-19 vaccines have undergone rigorous testing and have been proven safe and effective. Those who choose not to get vaccinated may put themselves and others at risk. It’s essential to approach COVID-19 anti-vaxxers with empathy and provide accurate information to address their concerns. Public health measures should be guided by science and designed to encourage vaccination rather than stigmatize those who are hesitant.

4. Anti-vaxxers, why are vaccines so bad?

Vaccines are not inherently “bad.” In fact, vaccines have been one of the most successful public health interventions in history, saving millions of lives by preventing serious diseases. The perception that vaccines are harmful often stems from misinformation, myths, and misconceptions spread by the anti-vax movement. It’s crucial to rely on scientific evidence and expert consensus, which overwhelmingly supports the safety and efficacy of vaccines. Any concerns about vaccines should be addressed through credible sources and open, informed dialogue with healthcare professionals.

5. What is your view on anti-vaxxers? Aren’t they cowardly and delusional?

Labelling anti-vaxxers as “cowardly” or “delusional” is not a constructive or empathetic approach. Anti-vaxxers are individuals who often have genuine concerns, albeit misguided ones. It’s essential to engage with them respectfully, listen to their apprehensions, and provide accurate information based on scientific evidence. Addressing vaccine hesitancy requires patience, education, and understanding. Name-calling or stigmatization only deepens the divide and hinders the efforts to build trust in vaccines and protect public health. Treating this issue with empathy and patience is more likely to lead to positive outcomes.

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Canada

Socio-Economic Implications of Canadian Border Closure With U.S

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After doing a  detailed analysis of the situation emerging from the closure of the border between    Canada and  US, it could be assessed that how damaging the decision is for the  Economy of Canada, and how beneficial, it will be for Canada, if it decides to re-open the Border which is closed over the fears of an outbreak of Covid-19 Pandemic.

Since, some people think that given the maximum number of  Covid-19 cases and several deaths worldwide, the decision should stay as there are thousands of cases and deaths over covid-19 in the US. They deem it a good step to keep the border shut over the fears of  Novel Corona Virus with the US and Mexico

Though some sections consider the move as a right decision based on the covid0-19 statistics some experts term it very dangerous for  Canadian Economy as it will be affected as major industries such Tourism and Travel, Immigration affected very badly and economic cannot be put on hold for long as the numbers show that  75% to 80% Canadian exports go to the US while 30% to 40% US exports make their way in  Canada.

Thus the economy has been hit very badly due to this prolonged closure and shutdown of Economic activities will ultimately pose a grave threat to falling in Recession and Falling of  Reserves.

The Canadian authorities will have to swallow a hard pill to re-open the b border for essential and non-essential travel since both types of entries in the country contribute to the economy of the country.

At the moment, Canada has limited Covid-19 infections as compared to the US that has a massive number of infections in the world.

According to the Border Management Experts, this could be the only problem that might have prompted  Canadian Prime Minister to extend the closure for another month until some  SOP’s may be developed to ensure on border covid-19 Testing and Scanning so that preventive measures should be taken to keep the infection ratio low in Canada.

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 The World economies are affected very badly over the lockdowns announced to prevent Covid-19 outbreak and their economy has been under pressure already and the financial experts predict the worst type recession shortly. 

The people of both countries are of the view that the Prolonged border closure has caused an economic crisis and several Industries such as Hotel Industry, Travel Tours and Immigration, Food and beverages Industry, sports Industry, Education have been affected very badly and both Canada and the US cannot afford to sustain more jolts to their economy as economic activities have dropped to almost  80%  and ring the alarm bells for the leadership to decide immediately what their next plan will for the border.

Whether they will reopen it in phases or provide restrict access to essential travel such health workers, Airline Crew, Food and Goods services, People visiting ailing relatives and other related activities that fall within the purview of  “ essential”.

Although, the global Pandemic has created a situation like recession which is going from bad to worse each Passing day, yet in such scenario “keeping borders Closed” for trade and Business Opportunities and other travel, entertainment industry, will incur an irreparable loss to the Economy of both Canada and US as both countries have signed several Trade Agreements and US has been losing millions of Dollars in terms ” US Entry Waivers” and this is putting pressure on world’s biggest economy

Even it is a great blow to the Immigrants who wish to travel to neighbouring countries.

Both Canada and the United States are providing millions of dollars to people as relief package, Health and social security and other procurements such  Covid-19 testing kits and establishing new isolation and Quarantine centres as the infections surge in the US and worldwide.

In such circumstances halting economic activities are suicidal for  Canada and Virus affected the US  by keeping borders close for non-essential or optional purposes despite putting some curbs on essential travels such putting immigrants in 14 days quarantine and other immigration-related curbs. 

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The economists fear that what would be the consequences if the covid-19 vaccine was unavailable till the end of the year 2021, will they still keep the border closed, sounds like insensible and disastrous for all types Industries and Sectors including  Immigration and Border services. 

So, it would be prudent on the part of Both Canada and US  to think over the re-opening of their border so that people intending to visit their relatives on both sides of borders may have uninterrupted access and they must be facilities at the border checkpoints for covid-19 so that the fears of  Canadian authorities about getting soaring infections may be dispelled by assuring them safety measures at border crossing points.

Furthermore,  the fears cannot be treated with medicines but they could be soothed with confidence-building measures as the statistics show that  65% Canadian fear to get contracted by Virus while over 60% US people have a similar situation for contracting virus.

Despite all this, nobody knows that when these borders will reopen for general people apart from essential travel as most people are in the grip of fear and prefer staying at home as per WHO guidelines, that may be the issue that both Canadian and US Governments are lingering on the issue and prefer extending closure as both nations enjoy cordial relation and the closure is a mutual decision of both countries.

Recently, though some Tour industry groups recorded their protest and demanded to re-open the border. The decision could not be influenced until the general public presses their respective Governments to review the decision and take some bold steps to save their economies falling to prey to this pandemic.

Both Canada and the US  cannot afford to lose millions of Dollars in border trade and border revenues such as Entry waivers, customs etc to boost their economies.

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China

Global Socio-Economic Impact of Covid-19

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The Pandemic originating from Wuhan China has enveloped the whole world and the catastrophe caused by covid-19 is beyond speculation.  Schools, Colleges, Universities and business are closed for an indefinite period and the World has gone into self-isolation while the countries imposed lockdown in the world in the severely hit areas to contain the outbreak at massive scale.

The pandemic has affected all the countries especially China, France, Italy, Germany, US, UK, Iran, Egypt and third world countries i.e Pakistan, India, Bangladesh, Sri Lanka and  Afghanistan and some African countries.

There are some countries which are severely impacted socially and economically while some countries have sustained moderate impact owing to taking timely preventive measures as per circulated guidelines of WHO and Local Health ministries of respective Countries.

With President Donald  Trump clipping the wings of  UN’s apex health body by cutting the financial support amid the Global Pandemic, the catastrophe is expected to go from bad to worse as WHO  will experience the funds’ shortage that will ultimately contribute to a deep humanitarian crisis

The world posts a bleak picture already as all business activities have been suspended, the markets have been closed for an indefinite period, the stock markets crashed and the unemployment ratio suddenly jumped to historical high due to covid-19 Pandemic. Even OPEC members have decided to cut the oil production given the pandemic situation. 

The Global economy has been severely impacted by the shocks of the deadly virus that prompted companies like Google, Yahoo, Microsoft, Face book, Twitter to ask their employees to work from home to avoid contracting  Covid-19.

All the industries have been impacted badly that include entertainment, Sports, food franchise has completely shutdown creating panicking situation all around as once busiest streets and markets have started presenting deserted look.

This global economic warrants that if the early remedy to cure covid-19 is not discovered, the future will be dreadful to predict. The mighty economies such as China, the US, France, Italy, UK, Germany has been seriously impacted by this deadly virus. The situation is haunting the people around the world, bringing misery of greater proportion as compared to Word War II, Ebola, SARS, MERS, Plage and Yaws.

The Daily Wage workers, Private workers, drivers, hawkers, shop keepers and thousands of similar workers have lost their jobs and the opportunity to earn their livelihood. The companies have preferred work from home option for their employees to limit the outbreak and avoid contracting covid-19.

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It is alarming that hundreds of workers have filed as unemployed. The lengthy lockdowns have created serious humanitarian and economic crises and the experts are of the view that the circumstances are fast moving towards the global recessions and may take a long time to recover from this catastrophe.

Though China has been able to contain Covid-19 and even lifted restrictions on outgoing flights with some strict SOPs, yet the Covid 19 seems to be an invisible predator waiting for its prey regardless of any region. The virus has impacted all the zones i.e with the cooler, hotter or moderate atmosphere.

The only solution to fight this pandemic is social distancing, maintaining the hygienic environment and avoiding crowdy spaces. The Governments around the world have imposed strict lockdowns and the frontline fighters (Health workers) around the world doing a marvellous job to protect their fellowmen even at the cost of falling prey to this deadly virus.

While fighting this pandemic. Many health workers have been tested positive. Even, some frontline soldiers lost their fight to this pandemic and laid down their lives to secure the future of their respective country.

Education is being imparted through digital platforms as online education is increasing for students. Though students are facing some issues such as the connectivity, Sound quality, Video Quality, yet in this emergency, the Schools, Colleges, Universities and other online course websites are striving to provide some light of  Knowledge in these difficult times.

The booming industries such as restaurants, hotels, motels and  Aviation have been closed for an indefinite period.

Coronavirus Pandemic has brought catastrophe in the world impacting all the industries and has caused economic slowdown throughout the world in all the major continents who are thickly populated such as Asia, Europe, the Americas and Africa.

Unfortunately, despite 151598 deaths worldwide and over 2.21 Million confirmed cases covid-19, all eyes are hooked towards the discovery of vaccine to treat the patients and save their lives. At the moment, only plasma therapy is being conducted and some common medicines are being used such as cough, flu fever-related medicine.

Though human trials have been started by some  Pharmaceutical companies, the experts are of the view that it may take one and half year for the vaccine to be available in the market. It is also estimated to be the costliest vaccine ever keeping in view its global implications and rapid speed of pandemic spread in the world.

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It is estimated that Europe, Asia, Middle East to suffer a lot especially, Italy, France, UK, Iran and US as the ratio of deaths is higher than other countries especially US where average deaths per days have surpassed all other nations that prompted Trump to cut funding to world health Organization accusing it of mishandling the pandemic and delayed response to mitigate its implication while  WHO head has refuted the allegations.

The covid-19 has also impacted Sports, News & Media, Entertainment and Services Industries to the extent that. All the sporting events have been suspended, series and Leagues have been rescheduled and big events such as  PSL, IPL, FIFA  World Cup, Olympics Games and others have been completely cancelled raising concerns among the players. Even the players are facing the trauma having travel history to the epicentre of Covid-19 Pandemic and tested positive.

 The Entertainment industry has been heavily impacted as all the dramas, Films and comedy shooting and recording has been postponed till indefinite period and all the events including concerts have cancelled due to covid-19 and actors have lost the source of living.

The services industry especially the skilled and non-skilled have been subjected to starvation as all the roadside small business such as Hair Cutting Salons, Cobblers, Gold and blacksmith shops, Electricians, Booksellers, daily wages workers and Masons have lost their living owing to lockdowns globally.

 Finally, the Print and Electronic  Media are partially impacted though they are a very vulnerable community as they have been busy in coverage of the pandemic around the world and are prone to contracting the deadly virus due to close contact with Patients at Quarantine Centres and the Health specialists working at the hospital and temporary health centres specially set up for an emergency.

The Print Media has been hit hard as people consider it risky to read a Print copy of newspapers over covid-19 fears and prefer paper or online edition of the newspapers. Hence, such a trend has impacted the Newspaper  Sales badly.

On the other hand, electronic media such as News Channels, Radio and Digital Media such as Websites, YouTube are grabbing people’ attention.

The Social Media is also buzzing with Covid-19 updates though  Social Media and Silicon Valley companies have asked their employees to work from home and follow the preventive measures these include Twitter, Yahoo, Facebook, Microsoft and Search Giant  Google.

The world should be united to fight this global pandemic that is haunting the world. The US should release funds to help WHO work effectively for global health and expedite the process of vaccine discovery as each day will deprive the near and dear ones of the families around the world. With collaborative efforts, the world can win this war against the pandemic.

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