Revenue fell slightly from 7.7 percent of GDP in the first half of FY2020 to 7.4 percent a year later, primarily from a decline in nontax revenue, which had been exceptionally high in the previous year.
The ADB report highlighted that reforms are required to promote high value-added exports, expand social spending, reinforce energy sector financial and technical sustainability, and implement structural changes that will strengthen institutions and create jobs.
Assuming the COVID-19 vaccine rollout is successful and economic stabilization measures are implemented, growth is expected to accelerate to 4pc in 2022 with improved consumption and investor confidence.
The government will invest $175 million in the project. It has also requested a $280 million loan in project cofinancing from the Asian Infrastructure Investment Bank.
*The ADB Country Director added that the problem is compounded for private sector activities due to unreliable access to basic infrastructure, while access to finance remains limited for women entrepreneurs, small businesses, and other underserved segments.
These thirty projects are being implemented with help of development partners like World Bank, Asian Development Bank, USAID, China, UK, Saudi Fund, Germany, and France.