Are we missing out on something? Whenever this question will arise, the answer will be YES. We always missed out something to conquer the upcoming time.
Pre-Action against this pandemic is one of those missing things which are taking down the world’s economy. Just three months ago, no one knew about this virus. Now, the whole world is on its knees in front of it. The world always reserves budget to kill humanity, but never to save humanity. Every country reserve more budget for defense instead of health. Isn’t it clarifying the priorities?
The world faced many pandemics and humanity felt the heat of it. World Wars, Spanish flu and now COVID-19. Every time, the economy suffered badly and took way too much time to be back to normal.
Anyhow, these are the macro factors and we cannot control them but, we can definitely prepare ourselves to tackle them and we are missing out in it.
This pandemic, the novel Coronavirus has affected the whole world brutally and will do more. It is spread in almost 186 countries and we cannot stop its multiplicative effect. Hospitals are reached to their fullest capacity. Unemployment increasing day by day because of markets being empty and the businesses are going bankrupt. They don’t have enough working capital to pay wages without any business activity. This is creating a decline in buying power. The decline in buying power, in turn effecting the other businesses which were not directly affected by the lockdown. In short, the chain of money circulation is getting a break.
According to studies, all country’s growth rates will fall significantly in the 2020’s. EIU predicts that the growth rates of China, India and Turkey will fall by 6% to -1.5%, 6% to -1% and 4% to -5% respectively.
It will definitely affect the growth rate of Pakistan.
Economists are predicting that the GDP could fall by 4% to 9%, the Inflation rate could increase by 9% to 15% and 3 to 5 Million people could lose their jobs.
Here the question arises, what do we need to do?
We have to win this battle in any case. Winning this battle means, minimizing the COVID-19’s multiplicative effect by producing safety equipment and test kits domestically, establishing the private labs, keeping social distancing and focus on making a vaccine. Helping those who need you the most in this critical time.
What about businesses? How to get back to the normal money circulation?
As we know, conventional business models are crashing and trying to keep their previous financial statuses.
Here another question arises, so which business model will be the key model?
5G technology is on the verge of the world so the E-Business is the futuristic model. Conventional businesses should adopt this model as soon as possible. They have to integrate their old business model with the new one to keep their financial cycle smooth. Consumer turnover in market will not be same as in past.
E-Business model will create opportunities for manufacturing, packaging, logistics and marketing companies to fulfill the demands of new e-businesses.
Till yet, digital reforms are just taken for granted. But now, we cannot survive in the upcoming time without making digital reforms for the E-Com industry, online banking & payment systems and logistics. In short, establishing the whole new Digital Eco-System for e-business model on priority besides health reforms.
After all these reforms, we will see the increase in GDP of Pakistan, employment, technology innovations, buying power and decrease in the trade deficit. Resulted as both business models will booming again with the collaboration of each other.
Experts already predict the potential of E-Business Model.
Industry experts estimate Pakistan’s e-commerce B2C market current worth to be around $120 million, with its size multiplying every year, growing at a compound annual growth rate of more than 100 per cent. As per Google’s analysis, this trend will continue during the next three to five years with the result being the surpassing of the $1 billion marks by 2020.
In addition, the B2B front has also been doing well, with the country’s software industry aiming to enhance its exports to $5 billion by 2020. At the same time, medium-sized IT firms in Pakistan earn around $530 million annually.
Pandemics are not new. They have come and gone and this will too but after this, things will not work like the old ways. We have to take innovative and smart reforms for the future.
In the end, we all should keep the hope of betterment and pray to Allah Almighty for the mercy.
Better days are coming. In Sha Allah! Peace Out!
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