ISLAMABAD: The Asian Development Bank said on Thursday that Pakistan is likely to hold economic growth to a projected 2 per cent in fiscal year 2021 once the Covid-19 impact subsides and the country resumes its efforts to address macroeconomic imbalances and initiate structural reforms.

In a supplement to the ‘Asian Development Outlook’ focusing on lockdown, loosening, and Asia’s growth prospects, ADB says Pakistan’s economy was on the path to recovery before Covid-19 and a national lockdown initiated in April. It is projected to contract by 0.4pc in fiscal year 2020, ending June as the outbreak further restricts economic activity.

With the impact of Covid-19 on South Asia becoming clearer, the economic outlook is grim. After the introduction of lockdowns in late March, economic activity in South Asia has stalled. While the pandemic continues to spread throughout the sub-region, containment measures have started to ease, and economic activity has resumed somewhat in many countries in the sub-region since late May.

Published in Dawn, June 19th, 2020