Pakistan growth rate projected with a low of 2.5 percent for the current fiscal year owing to Covid 19.

Moody’s investor service in latest regional credit outlook reported low Pakistan growth rate.

However it said risks for the entire Asia-Pacific (APAC) region were generally on the downside.

In December 2019, the New York-based rating agency projected Pakistan’s growth rate at 2.9pc for the current year.

This coincided with the State Bank of Pakistan (SBP) estimating the GDP growth rate for current year at 3pc, down from its earlier projection of 3.5pc.

“Risks for the APAC firmly tilted to the downside, including from much weaker European and American economies than currently assumed”, said Moody’s.

Moody’s has forecasted 4.8pc growth rate for China, down from 5pc before, on assumptions of slow resumption of economic activity and weak export demand.

It said the revised forecasts for the APAC region were based on coronavirus implications, incorporating ongoing travel restrictions and heightened containment measures, as well as the recent oil price shocks.

Moreover, oil price shock was adding to growth and fiscal pressures for exposed sovereigns.

A period of lower oil prices will further weigh on the economic and fiscal fundamentals of oil exporters, while mitigating the trade shock for importers.

Earlier The State Bank of Pakistan announced monetary policy.

According to new monetary policy, the interest rate has been decreased by 75 basis points from 13.25 to 12.50.

In its press release, SBP said that economic and health challenges posed by the spread of COVID-19 and the global economy is also slowdown due to the outbreak of Coronavirus.