Pakistan is projected to experience a broad economic recovery in fiscal year (FY2021) as the economic sentiment improves with the expected subsiding of the coronavirus (COVID-19) pandemic and the resumption of structural reforms, says an Asian Development Bank (ADB) report.
The Asian Development Outlook (ADO) revised the 2020 growth forecast for Pakistan to -0.4% and the growth forecast for 2021 to 2.0%. In April, ADB had forecast Pakistan to grow 2.6% this year and 3.2% next year. COVID-19 severely impacted economic activity in 2020, erasing gains achieved in the first half of the fiscal year. The suspension of travel and the closure of nonessential businesses induced concurrent demand and supply shocks.