World Bank concerned regarding Pakistan’s economy for FY 2020-21

World Bank (WB) has expressed concerns regarding Pakistan’s economy for FY 2020-21 citing low Gross Domestic Product (GDP) growth among all South Asian Countries.

The World Bank has raised concerns regarding extensively low GDP growth rate of Pakistan of around 0.5 per cent – the lowest among other South Asian countries.

According to a WB report, South Asian region is expected to be around 4.5 per cent in FY 2020-21 as compared to – 7.7 per cent (negative) GDP growth in the previous fiscal year.

Neighboring Afghanistan is expected to have a GDP growth rate of around 2.5 per cent, Maldives – 9.3 per cent, Sri Lanka – 3.3 per cent, Bangladesh 1.6 per cent, Bhutan – 0.6 per cent, India – 5.4 percent and the lowest 0.5 per cent for Pakistan.

Furthermore, WB in its report highlighted that the resurgence of COVID-19 coronavirus poses the gravest threat to Pakistan’s economy due to resulting lockdowns and other measures causing significant delays in economic reforms.

In addition to it, the report warned Pakistan of threats posed by locusts attack and heavy rains resulting in devastating repercussions for the agricultural sector, further hampering the already weakened economy.