World Bank is predicting a mere 0.5 percent growth in the current fiscal year and due to COVID-induced economic uncertainty poverty may increase in Pakistan
According to the reports of the World Bank, the rate of economic growth in Southeast Asian countries is likely to improve from -7.7 to -4.5 next year. Due to Covid-19 pandemic, uncertain and slow economic conditions are expected and therefore poverty may increase in Pakistan. Pakistan may also face the problem of external debt servicing.
World Bank’s Chief Economist for southeast Asian Countries said in a statement that the economy of southeast Asian Counties is not expected to revive and the future situation is bleak in these countries. The Economic growth of Pakistan in 2021 is likely to be less than 0.5, as opposed to the official target of 2.5 percent.
The economic growth of Pakistan remained around 4% during the last three years. Due to the reappearance of the corona, there could be a bigger danger to the economy of Pakistan whereas due to locust and unexpected rains, the shortage of food may also take place.
The World Bank report reveals that during the year, 2021-22, the average economic growth pf Pakistan is likely to be around 1.3 but this forecast is uncertain as it has been estimated on the basis that corona will not expand any more otherwise large scale lockdown will be compulsory which would be hazardous to the economy.
Due to the steps taken to control the Pandemic, the economic activities in the country were greatly squeezed therefore in 2020, poverty may increase. The real growth of the GDP of Pakistan is expected to come down to 1.5 from 1.9 in 2020.
Although the report of the World Bank reveals that Pakistan will have to face severe economic conditions in the future yet there are some good indicators as well. For instance, the textile sector of Pakistan has received the biggest orders in history from the USA, Europe, and some other countries as due to the worsening condition of virus in India and Bangladesh, the orders have been shifted to Pakistan.
The price of the cotton is at the peak today. The present government is striving hard to revive the economy. The issues of external debt servicing, increasing poverty, and high prices of especially of consumable items including vegetables and fruits are there but if the government is successful in dealing with the economic challenges it is hoped that the economy of Pakistan may revive.