The World Bank has projected Pakistan’s GDP growth rate at 2% for FY22, saying that poverty is projected to remain high. The Bank in its latest report “Pakistan-macro poverty outlook” stated that the country’s economy was severely impacted by the COVID-19 shock in FY20 leading to an increase in poverty. With the lifting of lockdown measures, the economy is showing signs of a fragile recovery. Growth is expected to gradually strengthen but remain muted in the medium term. Fiscal deficit and debt levels are projected to remain elevated but to gradually improve. Risks to the outlook include new waves of Covid-19 infections and delays in the implementation of critical structural reforms.
18/6/2021