Undocumented Sector

Pakistan's informal sector had always kept the economic activity going in every financial crises, until the current one. Triggered by the coronavirus pandemic, the crises tends to hurt the informal sector the most. By the time lockdowns are lifted in provinces,  millions of informal jobs and thousands of businesses would be gone. Considering this situation, relief packages are announced. Such as transferring cash directly to 12.5m poor households and distribute food packets among them. Along with concessions declared by the State Bank, the government announced funds and deferred interest payments to support businesses. Still, these initiatives are not enough to support the informal sector, which covers one-third of the country's GDP and supports 60pc of the total and 71.3pc of the non-agriculture workforce. Informal businesses are unregistered and so are their workers. Thus, they don't come under any social protection scheme. These people belong to bottom or lower-middle income classes according to ILO. As the pandemic poses a major threat to economically vulnerable people, the government's response should be focused on them. Especially the informal micro and small business must be supported to avert the possible anarchy in the country.

Summarized from 408 words to 190

Detailed post can be found at Informal enterprises


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