The coronavirus epidemic has had a significant negative impact on both the global and Pakistani economies (COVID-19). The COVID-19 outbreak has had an especially negative impact on micro, small, and medium-sized enterprises (MSMEs). In order to help MSMEs reduce business losses and weather the crisis, this essay will investigate the effects of the COVID-19 outbreak on these businesses and provide legislative recommendations.
We used an exploratory approach and carefully examined the existing literature, which included reports from the field, research articles, and policy documents. Additionally, we gathered data from 184 Pakistani MSMEs via an online questionnaire in order to provide empirical support. Describing statistics were used to assess the data.
The results show that the majority of the participating companies have suffered severe effects and are currently coping with a number of issues, including financial, supply chain disruption, lower demand, decreased sales, and lost profit, among others. Additionally, more than 83 percent of organisations were unprepared or did not have a plan in place to handle such a situation. A lockout that lasted more than two months was also predicted to be unsustainable by nearly two-thirds of participating businesses. Do you need any information about Capital Smart City Islamabad.
Price Reductions for Real Estate
The Pakistani real estate market had difficulties in 2018, as we witnessed a change in the administration as a result of political concerns. The COVID-19 pandemic has hit, and the real question is how much land values will decline. Back then, this recession was a fantastic opportunity for investors. We must consider the Great Recession of 2008, which saw a global decline in property values of almost 20%, in order to choose what to do.
Financial situation
If the nation’s economic situation is favorable, the real estate market will perform well on the international stage. When economies are strong, investors make investments, which increases demand for real estate. This happens as a result of how Pakistani real estate interacts with other industries and markets. On the other side, if the nation’s economy is failing and deteriorating over time, the real estate market could collapse. Investors withhold their money when they become aware of the status of the economy, causing the real estate market to suffer losses.
Few Resources Available for Real Estate Education
It is difficult to find a reputable or competent real estate professional in Pakistan. Most people are running this company exclusively based on their prior professional experience. The market will be significantly improved by the presence of qualified and accredited real estate agents. Real estate professionals that are well-versed in the field can use their skills to the fullest extent in order to maximise the sector’s actual potential.
The digital transformation that has occurred in the real estate industry in recent years has led to an increase in demand for qualified real estate agents. The only two recognised universities in the nation that still offer real estate courses are the Panjwani Institute of Business Studies and Technology (PIBSAT) and the National Institute of Real Estate Management (NIREM).
Read more about Lahore Smart City
Common man’s purchasing power
The purchasing power of local Pakistanis is decreasing. On the other side, Middle Eastern nations have passed laws requiring private companies to reduce employee pay by 40%. The present housing bubble will keep popping.
Inventory problems
A supply-demand imbalance in the real estate market could cause issues with inventory. For instance, there may be fewer active listings in a certain area but the proportion of potential buyers increases. Such circumstances cause real estate to lose when a potential buyer withdraws. Inventory problems can also result in cap rate compression. A rise in the cost of commercial real estate without a corresponding rise in rental income is known as cap rate compression. kings town Lahore is the best for buying commerical plots.
Conclusion
MSMEs make up over 90% of Pakistan’s national businesses and provide 40% of that nation’s GDP as well as 40% of export earnings (Shah, 2018). This study examined how the COVID-19 epidemic affected Pakistani MSMEs in order to assist practitioners and policymakers in streamlining strategies to support these businesses during the current crisis. This is the first study that has, as far as we are aware, carefully gathered information on the effects of the COVID-19 outbreak in Pakistan.
Author Bio
Ramza Zahra is a Karachi-based freelance content writer who uses her life experiences and curious nature to research and pen it down and make a living. Currently, she is working with Sigma Properties as an Snr. Content Writer.’