Pakistan’s economy is showing signs of recovery on the back of activity in the construction and manufacturing sectors, according to the latest report by the Asian Development Bank (ADB).
ADB also lauded the government’s emergency relief packages in helping the economy to revive in these testing times of COVID-19.
The brief report “Asian Development Outlook (ADO) 2020 Supplement: Paths Diverge in Recovery from the Pandemic” released on Thursday said the developing Asia was now forecast to contract by 0.4% in 2020, less than the 0.7% contraction envisaged in the Asian Development Outlook 2020 Update in September.
The recent developments in the industrial and agriculture sectors have given a ray of hope that the economic growth rate may remain in the range 2.6% to 2.8% in this fiscal year, better than the official target of 2.1%.
The report also mentioned that the recovery will also be dependent on how the Asian region will tackle the on-going COVID-19 pandemic.
The earlier South Asia forecast for 6.8% contraction is upgraded to 6.1% in line with an improved projection for India.
Recovery in Southeast Asia continues would lag as COVID-19 virus containment efforts in the larger economies hamper economic activity. Subregional forecasts are downgraded for 2020 from 3.8% contraction to 4.4%, and for 2021 from 5.5% growth to 5.2%.
Depressed demand and low oil prices will keep regional inflation in check at 2.8% in 2020 and 1.9% in 2021.
In the previous ADO Updated Outlook report of September, ADB had said Pakistan’s economy may grow at a pace of 2 percent.