Fresh Insight through a Keynesian Theory Approach to Investigate the Economic Impact of the COVID-19 Pandemic in Pakistan

Kashif Abbass, Halima Begum, A. S. A. Ferdous Alam, Abd Hair Awang, Mohammed Khalifa Abdelsalam, Ibrahim Mohammed Massoud Egdair and Ratnaria Wahid
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Kashif Abbass: School of Economics and Management, Nanjing University of Science and Technology, Nanjing 210094, China
Halima Begum: Schools of Economics, Finance, and Banking, Universiti Utara Malaysia, Sintok 06010, Kedah, Malaysia
A. S. A. Ferdous Alam: School of International Studies, Universiti Utara Malaysia, Sintok 06010, Kedah, Malaysia
Abd Hair Awang: Faculty of Social Sciences & Humanities, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia
Mohammed Khalifa Abdelsalam: Department of Banking and Risk Management, School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok 06010, Kedah, Malaysia
Ibrahim Mohammed Massoud Egdair: Department of Business Administration, Faculty of Economic and Accounting-Murzq, Sebha University, Sebha 00218, Libya
Ratnaria Wahid: School of International Studies, Universiti Utara Malaysia, Sintok 06010, Kedah, Malaysia

Sustainability, 2022, vol. 14, issue 3, 1-20

Abstract: Beyond the immediate impositions of dealing with COVID-19, this disease represents a severe and significant challenge confronting Pakistan’s economy. The study’s objective was to evaluate the coronavirus epidemic’s effect on Pakistan’s economy and measures devised to mitigate the damage done by this disease. The study research design used the elementary concept of Keynesian theory comprising of the mapping of systematic behavior of the COVID-19 pandemic. Issues were formally underpinned, described, and visualized through the Keynesian theory concept. The eruption of COVID-19 has jolted the national and international economy. Pakistan is included, causing millions of people to stay at home, lose their jobs, and suspend or end business operations. Unemployment in Pakistan has reached nearly 25 million people, driving many towards conditions of hunger and poverty as the major economic damage in several sectors is anticipated at around PKR 1.3 trillion. The hardest-affected sectors comprise industries such as tourism and travel, financial markets, entertainment, manufacturing, etc., having a devastating effect on gross domestic product (GDP). It is mainly daily-wage earners and people running small businesses that have been seriously exploited and subjected to a curfew-like situation. However, the Keynesian theory suggests that supportive macroeconomic policies must restore trust, demand recovery, and provide interest-free loans to overcome Pakistan’s currently upcoming crisis.

Keywords: COVID-19; Pakistan economy; economic scale; Keynesian theory; mitigation; economic revival measures (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (17)

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