ISLAMABAD: Pakistan's GDP growth rate is expected to remain lower than -0.4 percent for the outgoing year projected by the government and International Monetary Fund (IMF) as it is based on data available till March/April 2020.
This was stated by economists and World Bank (WB) official while talking to Business Recorder here on Thursday. IMF on Wednesday revised upward the GDP growth rate projection for the 2019-2020 -0.4 percent against its earlier projection of -1.5 percent.
Business Recorder approached the IMF Resident Representative in Pakistan Teresa Daban Sanchez and asked for the rationale behind revising upward the GDP projection for the outgoing fiscal year. However, till filing of this report no response was received.
WB earlier this month revised downward the GDP growth rate projection for Pakistan by 5 percent to negative 2.6 percent from 2.4 percent for the outgoing fiscal year 2019-20.
This correspondent contacted WB official in Pakistan and asked for any possibility in revising upward the projection for outgoing fiscal year. The WB spokesperson in Islamabad, Maryam Altaf stated, "We are still holding our projection for FY20 and FY21. Uncertainty related to the Covid-19 pandemic remains high and economic activity remains understandably weak".
Former Advisor to Finance Ministry Dr Ashfaq Hasan Khan said that IMF has followed the government figures and revised the GDP growth projection. However, the government projection is based on data available till April, 2020.
Covid-19 impacted the economy in the last quarter of the outgoing fiscal year and uncertainty is still prevailing, said Khan, adding that GDP is estimated to remain between -0.8 to -1 percent in the outgoing fiscal year.
Copyright Business Recorder, 2020
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