As Coronavirus grips China, businesses consider relocating industries to Pakistan
International markets are likely to reconsider the global supply chains to elude focus of businesses in one country
The deputy governor of the State Bank of Pakistan, Dr Murtaza Syed, said that after recovery from the corona virus, international markets are likely to reconsider the global supply chains to elude focus of businesses in one country – China. This will create opportunities of the relocation of some industries to Pakistan.
Circumstances may change
Speaking at a meeting to discuss the result of the corona virus on the country’s trade, the deputy governor said, “Although corona virus cases are decreasing in China, the disease is increasing in other countries. By the end of May, the circumstances may change.”
Syed further stated that 50 to 60 per cent of the factories were closed in China due to the virus; therefore, next quarter results would show a drop in economic growth. In 2019, the global GDP grew around 3 per cent, which is going to fall this year due to the widespread disease.
Syed also mentioned that England and other developed countries are decreasing interest rates to support their markets as they cope with the impact of the virus.
Pakistan’s import in 2018
|Electrical and Electronic equipment
|Machinery, Nuclear Reactors and Boilers
Speaking on the occasion, the Indus Hospital Infectious Diseases Consultant, Dr Samreen Sarfaraz, said, “The corona virus is a storm in a teacup, which is exaggerated and presented as a tsunami.”
Dr Samreen Sarfaraz further stated, “The virus is discreetly contagious and a new viral illness of low mortality rate. Roughly, 80 per cent of patients recover without being admitted in a hospital, other 17 per cent recover after admission for supportive care and only 3.4 per cent die. Its epidemic potential is nothing when compared to the influenza pandemics in the past.”
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