Islamabad: The Asian Development Bank (ADB) has predicted that Pakistan’s economic recovery by 2% during (Fiscal Year) FY2020-21, according to a news story published today (September 16). However, the bank clarified that this recovery is subject to the country’s ongoing COVID-19 situation and the continuation of structural reforms under the International Monetary Fund (IMF) programme.
The ADB released these findings in its Asian Development Outlook (ADO) update, which covers a number of countries in the region. The report stated that the country’s agriculture sector would be a major contributor to its GDP growth and economic recovery. In addition, industrial growth is also expected during the fiscal year. Moreover, the inflation rate is expected to go down to 7.5% in the same time period, and the fiscal deficit is anticipated to decline to 7%.
The main obstacles that may prevent these predictions from coming true are a possible resurgence of the COVID-19 pandemic, and the failure to implement requisite financial reforms. Otherwise, the current account deficit is expected to remain at around 2.4% of the GDP.
