How has Covid-19 affected the Small Businesses Workers in Pakistan?

Why always the poor have to sacrifice when the economy outbreaks?

But this time not only weak but the daily wage worker, housemaids, small businesses and all are affected by CoronaVirus. This outbreak has not only changed but shutdowns many companies who earn-out in the holy months and run smoothly in other months, but this time unconditionally, they have shut their shops following the orders of the Federal government. Although the government has announced several schemes( to control hunger and other poverty issues, which may affect the Country negatively( The amount is less, but something is better than nothing. According to the Pakistan Trade Labour Union, Around 75% of the Country’s total 65 million labor force is unregistered. Daily wage workers will be dying of hunger, not because of Coronavirus, as it has a 2% death ratio all over the world. Also, one’s who are living in the slumps are not facilitated with the hygienic factor, so the problems are arising day by day. The good thing is that many NGOs and social workers are helping them and at least resolving the issue of food and grocery items.

For an agricultural culture producing Country, the primary source of earning is from Exports. Approximately, Pakistan’s agriculture sector plays a central role in the economy as it contributes 19% percent to GDP and absorbs 45% of the labor force. It is also an essential source of foreign exchange earnings and stimulates growth in other sectors. But this earning percentage is converted to 0 because all exports are restricted due to Coronavirus. Many laborers get unemployed, and their only source of income has been blocked. Although the Country’s own needs are fulfilled, extravagant items are wasted.

Many of them indeed are not facilitated with Government fund schemes, so in desperate behavior, they are forced to do unlawful things.

Following the orders to shut down the factories, Pakistan’s largest workforce employed in the manufacturing sector is now idle. The garment and textile industry roughly contribute 8% revenue in the Country’s GDP. The industry’s supply chain is also disturbed. The production is stopped, the ones who are in the process the products are not transferred in the shops because the orders are canceled from the layoffs and outlets. There is a risk that hundreds of thousands of workers have to lose their jobs or work part-time or earn less. According to the global alliance, 85% of Pakistan’s labor force in the garment and textile sector has not a legal contract with the factory owners. Only verbal agreements are made in which sick leaves, social security payments, and other things are not discussed as they are working on a piece and a daily basis ( Also, the Federal Government of Pakistan reduces the tax percentage, so the Business sector does not unemploy its workers in such a crisis period. The unemployment rate may surge to 8.1% in the fiscal year 2020-21 compared to 5.8% reported by the Labour Force Survey 2017-18.

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