'71% businesses in Pakistan admit to cash flow problems', ACCA's latest survey reveals - Press Release issued by Association of Chartered Certified Accountants Pakistan.

Islamabad -- June 27, 2020 (PPI-OT)

Following is the text of press release issued by Association of Chartered Certified Accountants Pakistan (ACCA)

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Organisations face increasing operational challenges as a result of the domino effect of Covid-19. Irrespective of size, sector or country the economic and social impact of the pandemic has expanded, and challenges are growing for business and the accountancy profession, reveals ACCA's Covid-19 global survey 'The Road to Recovery'.

Following March 2020's original report, three months on the picture now crystalizes many key issues that need to be addressed by policymakers and governments. ACCA is calling on governments worldwide to review economic rescue packages and enable a return to sustainable growth.

For Pakistan, the overall picture is one of a slow return to normal. The survey asked respondents in Pakistan a number of questions specific to their role or organisation sector and the results show:

55% say employee productivity is negatively affected

48% of organisations are focusing on the long-term return to strategic opportunities for the future beyond 6 months

52% say customers have stopped or reduced their purchases

71% admit to cash flow problems.

Sajjeed Aslam, head of ACCA Pakistan says: 'Our data for June reveals continued cash flow challenges, with half of respondents in the Pakistan saying this is a problem. Since the March research, the new data reveals greater concerns over financing and debt issues, and given the global economic climate, it means these will be difficult matters to resolve.

'The key issue at the centre of these issues is a collapse in customer demand for many organisations, with more than half of respondents citing purchases as completely stopped or reduced here in Pakistan. It's a domino effect, with both product launches and investment plans being deferred, further compounded by supply chain challenges and issues with customer order fulfillment.'

Other results for the Pakistan show:

72% have now adopted flexible working from home strategies, with 42% adopting staff rotas to accommodate social distancing requirements.

47% are implementing an operating cost reduction strategy

40% are reviewing organisation processes to identify efficiencies

27% evaluating their social responsibility to the wider...