Perceived Effect of COVID-19 on Increase of Poverty in Pakistan: Empirical Analysis through Opinion of Leading Economists

Abstract

There are many causes of poverty like recession, money devaluation, trade deficits, lack of technology, infrastructure, and industrialization. In recent times, studies that focus on the effect of COVID-19 are in the headlines; among them, very few are focused on the impact of COVID-19 on poverty. Specifically, there is minimal research work on the effect of the pandemic on the outbreak of poverty concerning Southeast Asia and Pakistan. Therefore, this study has been conducted explicitly with reference to Pakistan to estimate the effect of COVID-19 on the increase of poverty through collecting data from leading economists. The study is one of the initial studies; thus, it is focused primarily on primary data in order to show the perceived impact of COVID-19 on the increase in poverty in Pakistan. The study findings and in-depth analysis could help devise relevant economic policies that may address poverty concerns burgeoning from pandemic-like situations and create a ripple effect of disturbing macroeconomic indicators and socio-economic variables in developing countries. The study uses SMART-PLS for data analysis, indicating that pandemics such as COVID-19 significantly impact the increase of poverty in Pakistan. Thus, robust policies are required to eradicate poverty and combat the causes which stem poverty issues in developing economies, specifically during pandemics where socio-economic activities become halted and income generating opportunities are ceased.