Expats in US brace for economic impact

Pakistani-Americans having small businesses or daily wage jobs have been hit the hardest

T

he coronavirus outbreak has not only made United States the worst-hit country in terms of the number of cases and deaths, but also because of the financial tremors that are likely to reverberate far longer than the pandemic itself. Over half a million Pakistani expats settled in the US are reeling under the economic meltdown caused by the ongoing crisis.

Pakistani-Americans in the US are a very diverse group contributing in almost every field. However, a majority of these settlers have small businesses or daily wage jobs. Both these sectors have been hit the hardest. The fear of the unknown virus and the worries of an uncertain future appear to be multiplying their woes.

Umer R Khan is the territory manager for Star Stop, a company that owns 130 convenience stores and gas stations across three major metropolitans in Texas. Khan says their stores are currently in good shape since the supply chain of essential commodities, other than a few items, has proved resilient.

“However, fuel sales have dropped drastically since people are not travelling.” He says that stores situated in neighbourhoods are doing better than those along the highways.

Khan estimates that the supply chain will start feeling the pinch if the lockdown continues for another month. “Plants of some major manufacturers and their warehouses have been shut down. Supplies of imported items have also been disrupted.” This, he argues, is likely to affect sales in the coming weeks.

However, his company is not planning to lay off any of their 2,200-strong workforce since the expectation is that sales would pick up once the situation returns to relative normalcy. “At this point, we have taken steps for employee protection and grocery store jobs are available. It has become an individual decision, whether people want to take the risk or not.” He cites the example of the Nepalese community in Houston that has decided collectively to stay home instead of going to work.

The Trump administration’s decision to provide stimulus cheques for income support could provide a short-term relief, he says. But he sounds alarmed at the prospects of reopening the country prematurely. “There are around 2,000 cars lined up at any given time outside the Covid-19 drive-through testing facility. This shows that the threat is still there.”

Daily wagers and other workers outside the essential commodities sector are struggling. Azhar Baig, who owns a small take-away in Boston suburbs, says he had to shut shop when orders dried up. “People either stocked-up before lockdown or have been reluctant to order food from outside,” he says. Baig says he paid a month’s salary to his three employees before sending them on leave. “Even with the salary, they would not find survival easy since their take-home had included tips. I am not sure if I can pay them for another month if this situation lingers.”

Baig believes the supply chain is an issue. “Most of our wholesalers are based in New York, which is now the epicentre of coronavirus in this country and where everything is closed,” he says adding that prices of whatever inventories are left are rising.

Minorities appear to be affected more than others, particularly because stimulus cheques for most people have been delayed despite promises of early delivery. Baig says this could work against Trump in an election year.

Minorities appear to be affected more than others, particularly because stimulus cheques for most have been delayed despite promises of early delivery. 

Akbar Chaudhary, who runs a travel and transportation company in Virginia, says that the transportation sector has been severely hit by the crisis. “We had more than 20 drivers working for us as daily wagers. They are not getting paid since there is no work,” he rues adding that there is no hope of an immediate revival even if the lockdown is eased.

He says while the embassy and local Pakistani organisations are trying to help those in distress, there is no long-term plan. While economic conditions are invariably a factor in every election, he says Pakistani-Americans could show their frustration by voting against Trump in the next elections. “Virginia has already given an upset result in the midterm elections by snubbing Republican candidates.”

A considerable number of Pakistani students currently enrolled in academic institutions across the US are finding it increasingly difficult to escape the social and economic brunt of coronavirus. Iftikhar Saleem Bhatti, a graduate student at Brandeis University, says that students sharing apartments are the most vulnerable since social distancing is practically impossible for them. “Most of these apartments have shared kitchens and bathrooms.”

Classes have switched online for the time being but summer will be an altogether different challenge. “I know some students who were planning to leave their leased apartments and go home during the summer vacations. Now they are stuck.” Students who had already secured summer scholarships would be well placed but those without a scholarship are likely to struggle if they are unable to return home, says Bhatti.


The author is an assistant professor of journalism at Lamar University in Texas.   He tweets at @awaissaleem77

Expats in US brace for economic impact amid coronavirus pandemic