ISLAMABAD: The Asian Development Bank (ADB) has revised downwards the GDP growth rate projection for Pakistan to -0.4 for fiscal year 2020, and two percent for fiscal year 2021.

The ADB in its latest report, "Asian Development Outlook Supplement 2020", stated that Pakistan's economy was on the path to recovery before Covid-19, and a national lockdown initiated on April 1.

It is projected to contract by 0.4 percent in fiscal year 2020 (ending 30th June 2020) as the outbreak further restricts economic activity.

In April 2020, the bank had projected Pakistan's economy to grow at 2.6 percent in the current fiscal year.

Once the Covid-19 impact subsides, Pakistan will resume its efforts to address macroeconomic imbalances and initiate structural reform, likely holding economic growth to a projected two percent in fiscal year 2021.

In April 2020, the bank had projected growth rate for Pakistan at 3.2 percent for the next fiscal year, it added.

The bank stated that inflation projections for Bhutan in 2020, and for Pakistan and Sri Lanka in 2020 and 2021, are revised down from ADO 2020 in line with sharply contracting demand.

The ADB has revised downwards the inflation rate projection for Pakistan from 11.5 percent to 11 percent for the current fiscal year, and from 8.3 percent to eight percent for the next fiscal year.

Developing Asia is now projected to grow by only 0.1 percent in 2020, which would be the lowest regional growth outcome since 1961.

Contraction is expected in all sub-regions except in East Asia, it added.