Coping with the deadly virus.

Byline: M Ziauddin

Part of Pakistan seems to be in a state of denial as except for Sindh and Iran-Balochistan border area, one does not see even rudimentary measures being undertaken anywhere else, to protect the population and the economy from an actual outbreak of coronavirus.

According to a World Bank newsletter dated March 9, 2020 (Swift action can help developing countries limit economic harm of coronavirus by Ceyla Pazarbasioglu, Vice President, Equitable Growth, Finance and Institutions (EFI), World Bank Group) in the coming weeks, all countries would need to take concrete policy steps to protect their people and limit harm to their economies.

Both the World Bank Group and the MF have unveiled massive financial-support packages. The World Bank Group's initial fast-track package of $12 billion will immediately support the efforts of developing countries to strengthen health systems. Depending on the duration and the severity of the epidemic, the Bank will be ready to provide a second phase of support with a greater focus on economic and social impacts.

The package deploys the Bank's full array of capabilities - from the Bank, the International Development Association (IDA), and the International Finance Corporation (IFC) - to limit the damage as quickly as possible. IFC, for instance, is working with commercial banks to expand trade finance and working capital for businesses. It will also directly support its corporate clients to sustain supply chains and limit downside risks.

As Ms Pazabasioglu points out no one can reliably predict the full economic impact of the outbreak.

'The outbreak arrived at a weak point for the world economy, when global growth was beginning to pick up from its lowest rate since the 2009 financial crisis.

'That has troubling implications for developing economies: Tighter credit conditions, weaker growth, and the diversion of government resources to fight the outbreak would reduce funds available for key development priorities. An economic slump would also set back the fight against extreme poverty. It is imperative, therefore, that policymakers everywhere recognize how economic harm can be transmitted from one country to another - and to prevent its quick spread.'

That transmission is likely to occur through several channels. The first is trade: global value chains, which account for nearly half...