Pakistan to see 2.6 growth amid high inflation, corona: ADB

The Asian Development Bank (ADB) has warned that Pakistan’s economy will face a slowdown with the growth rate staying around 2.6 percent in the current year.

Moreover, the inflation will be 11.8 amid the damaging effects of locust attack on crops and the possible negative consequences of coronavirus for the industrial sector.

The ADB’s latest report on the economy of South Asian countries, however, says that growth rate will improve a little in 2021 to the level of 3.2 percent.

The report mentions the locusts attack, saying it has badly affected the wheat, cotton and other crops.

Moreover, it says the coronavirus will have damaging effects on industries, resulting in a marked reduction in the production of large and medium scale industries.

Meanwhile, the reduced market consumption means that the export sector and businesses will also experience a heavy brunt.

The report says the depreciation of rupee and the rise in the prices of food items mean that the inflation will reach 11.8 percent but fall below in the single digits to 9.8 next year.

However, the ADB says that the current account deficit is on a decline due the government measures with the rate staying at 2.8 percent.

ADB Country Director Xiaohong Yang said although Pakistan’s economy was in better position when compared with the past it required national unity to overcome the coronavirus pandemic.