By Faiza Tehseen ISLAMABAD, Feb 24 (INP-WealthPK): The Covid-19 pandemic, which is being referred to as a black swan event, has become a dark shadow over worldwide economies especially for developing countries like Pakistan. It may push back the hardly won gains on poverty reduction and social development. Over the last 15 years, the poverty rate in Pakistan has declined by 40 percent, but due to the pandemic in fiscal year 2019-2020, it was feared that the gains would be lost. Although smart lockdowns prevented the overall collapse, vulnerability still exists at a large scale and still the situation is uncertain after the emergence of the Omicron variant. Pakistan is an agrarian country, and the pandemic has made this sector vulnerable because a large portion of its population and workforce relies on it for livelihood. In Pakistan, vulnerable groups include women, children, people with disabilities, agriculture and livestock-relying households, and skilled/unskilled daily wage labourers belonging to every work group. These people have limited approach to healthcare and are more vulnerable to economic shocks. While on the industrial level, major victims of the COVID-19 outbreak are micro, small and medium enterprises. The Government of Pakistan has taken many initiatives to tackle the pandemic and to support the affected people on a socio-economic basis. Ehsaas program is one such initiative taken by the government. The national poverty graduation program (NPGP) is a leading initiative of the Ehsaas Amdan program (supported by the International Fund for Agricultural Development and Pakistan Poverty Alleviation Fund as the implementing partner). Under this design at least 3.2 million households will be benefited. The Government of Pakistan has announced a fiscal stimulus of Rs1.2 trillion under its Ehsaas emergency initiative with expanded outreach from 5.2 million to 12 million households by distributing Rs144 billion (Rs12,000 per household) cash grant of Rs158 billion to 3 million daily wagers. Rs50 billion were allocated for multiple purposes i.e., provision of food items at subsidised rates at utility stores for the poor, strengthening the capacity of public hospitals, payment of electricity and gas bills in instalments over three months, refunded taxes for transporters, and raising wheat procurement targets to inject a cash stimulus concerning the rural economy. Pakistan Poverty Alleviation Fund (PPAF) recently launched a research and learning event with the help of local support organisations (LSOs) to shed light on the effects of such vulnerabilities and their after effects. Actionable policies to face and overcome the vulnerabilities especially due to natural phenomenon were discussed in the said event by industry experts and programmers in Pakistan. For the said research dialogue, a research data of at least 423 households was collected in which 10 percent decline in overall households, 7 percent in food dropping, was shown concerning the overall household expenses, especially during the pandemic. To overcome the challenging situation at the grassroot level, the PPAF has given some suggestions e.g., proper listing of ultra-poor households, distribution of rescue and personal protection equipment, incentivising partnership between the state and LSOs, quick processing of cash transfer in case of emergency, involvement of community members to carry out the emergency plans, updated social research, active distribution of vocational/technical and home-based business facilitation to youth, handicapped ones and women. Supply chains need to be more integrated from the bottom rather than from the top. Holistic changes across institutional, community and market levels are needed to enhance the capacity of the vulnerable poor to absorb and neutralise macroeconomic shocks as it is observed that the policy narrative surrounding the Covid-19 in Pakistan centres on healthcare and economic relief. Both of these factors cannot be separated from each other, but there is a need to make more active and uniformed policies for a quick emergency response. Secondly, unemployment protection is also an aspect to be focused on. To provide more relief, centralised mobile units with active database must be a part of the strategy. Drone imagery techniques to access the far-off areas can also be a part of a relief-providing strategy game. Philanthropic activities in multiple sectors e.g., support for hospitals keeping inadequate health facilities, public health messaging campaigns, infection tests for patients, ventilators and personal protective equipment along with other consumables, steps for the economic salvation, are important to revive the sufferers of the pandemic. It is important to plan Covid-19 response measures in a tactful way to overcome the financial and social challenges with a wide range of short and long-term policies including increasing access to essential health services, job protection and financial help to small and medium enterprises, guidance for economic recovery, social cohesion through dialogue.