Impact of COVID-19 on Productivity and Financial Performance of a SMEs in Pakistan

Abstract

COVID-19 is a health emergency worldwide and affects almost all countries in the world. It started with CHINA then move to different parts of the world. Millions of people in the world effect due to this epidemic situation. This crisis globally affects national and global economics. This epidemic situation forces many businesses to close. Many business groups are facing losses such as a decrease in the sale, shortage of raw material, supply chain disruption, cancellation of export orders due to transport disruption. This pandemic situation is harshly affecting the stock market, economy, transportation, health care as well as Animal market and meat market in Pakistan. Pakistani economy cannot bear such kind of disruption caused by this epidemic situation. By this, the overall GDP of the world is decreasing. It seems that most of the people after this pandemic leads to becoming less interested in investment and most probably interested in saving our capital that leads towards a decrease in economic growth. In September 2020, the current country account deficit is still in the surplus from the 03 continuous months of US $73millions (Trade, 2020). Most of the companies allow their workers to continue their work from home but, there is an extra cost which the company has to bear. By this, productivity and financial performance badly affect, and profit is decreases day by day, and the cost of living in this crisis is increasing day by day. There is a positive and negative effect of the productivity and financial performance of the SMEs on the individual lifestyle and society. In the lockdown, most of the SMEs did not pay their worker, and employees are facing harsh times. By this, the rate of unemployment is increasing in this pandemic situation.