The Asian Development Bank (ADB) has forecast that Pakistan’s economic growth rate will improve from negative 0.4% to 2%.
A report released by the Asian Development Bank (ADB) said that the government of Pakistan had given a relief package of Rs. 1240 billion to boost economic activities affected by the Coronavirus pandemic.
The government package is expected to improve economic activity, the report said.
According to the report, inflation in Pakistan is expected to be 7.5% during 2021.
Despite locust attacks, agricultural output remained at 2.7 per cent, while Pakistan’s current account deficit narrowed due to a drop in imports.
Earlier in April, the ADB had projected Pakistan’s economic growth at 2.6 per cent this year, compared to 3.6 per cent for next year.
According to the ADB, Pakistan’s economy has been badly affected by the Coronavirus. After the decline in Corona, there is a possibility of economic recovery in Pakistan.
The Asian Development Bank (ADB) estimates that inflation in Pakistan will remain at 10.7 per cent in 2020 and is expected to decline to 7.5 per cent in 2021.
The report said that due to the decline in imports, Pakistan’s current account deficit has been reduced. To deal with Coronavirus, Pakistan has given a relief package of Rs 1240 billion, while the agricultural sector production has remained at 2.7 per cent despite locust attacks.
Earlier in June, The World Economic Outlook report of the International Monetary Fund (IMF) has shown that Pakistan’s economic growth is likely to be one per cent next year.
The World Economic Outlook Report released by the International Monetary Fund (IMF) states that Pakistan’s economic growth is expected to be one per cent next year.
The IMF’s economic growth rate estimates are contrary to government estimates, in which the government set a growth target of 2.1 per cent in the new budget.
According to the IMF report, Pakistan’s growth this year will be minus 0.4 per cent as the global economic crisis from Corona will be more serious than expected.
The report says more financial problems could arise in January-March 2021.
The IMF says there is a risk of a resurgence of the pandemic in the countries that defeated Coronavirus.
It should be noted that the global pandemic Coronavirus has caused a severe shock to the world economy which has also badly affected the Pakistan’s economy.