The “Impact of COVID-19 on SMEs” survey, conducted jointly by Small andMedium Enterprises Development Authority (SMEDA), Asian Development BankInstitute (ADBI), and Asian Productivity Organization (APO), ranks Pakistanthird, in terms of support provided by the government to small and mediumenterprises (SMEs) to mitigate the impact of COVID-19.
The online survey was conducted during August and September 2020 anddepicts data collected by 236 SMEs from Pakistan.
According to the survey, a majority of the enterprises in Pakistan werefacing cash flow (82 percent) and a shortage of raw material (65 percent).Despite this, 11.44 percent of SMEs expect their sales revenue to increasecompared to 2019, while 12.29 percent of respondent enterprises expecttheir sales revenue to remain the same.——————————
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The same survey was also conducted in other comparable economies in theregion, including Indonesia, India, and Bangladesh.
Among the changes reported in the business environment from February toApril 2020, Pakistan was the best performer in the region (in terms ofpercentage). A minority of respondents (36.44) percent reported asignificant decline in domestic demand.
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In comparison, 72.29 percent of enterprises in Bangladesh, 50 percent inIndia, and 42.52 percent in Indonesia reported a significant drop indomestic demand.
In terms of government support, the Pakistani government’s electricitysupport package was highlighted as an important catalyst in supporting SMEsdirectly during the economic downturn brought by the pandemic.
The survey showed 27 percent of respondents reporting that they receivedsupport through the payment of utility bills.
