The World Bank on Thursday sounded a grimmer tone for the economy of Pakistan, saying that the country will witness a 0.5 percent growth rate only in the current fiscal year.
According to the details, Pakistan’s economic outlook, in light of WB’s report, remains fragile for at least two years, as the outbreak of the coronavirus respiratory disease compounded the country’s miseries.
The report stated that there are considerable downside risks to the outlook of Pakistan’s economy.
According to the latest South Asia, Economic Focus Beaten, or Broken? regional growth is expected to contract by 7.7 percent in 2020, after topping 6 percent annually in the past five years.
Regional growth is projected to rebound to 4.5 percent in 2021.
Factoring in population growth, however, income-per-capita in the region will remain 6 percent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic.
“The news is not good and the outlook is dire for South Asia,” World Bank Chief Economist for South Asia region Hans Timmer said in his opening remarks given through audio conference.
“The GDP tells only part of the story as the informal sector is hit more than its proportion,” he added.
“Economic activity contracted and poverty is expected to have risen in FY2019-20, as monetary and fiscal policy tightening, earlier in the year, was followed by lockdown,” said the report.