ISLAMABAD: Pakistan’s economy would grow by two percent this year as COVID-19 restrictions ease and business activity resumes, the Asian Development Bank (ADB) said in a report on Wednesday, adding that improvement in economic outlook would depend on an effective coronavirus immunization campaign launched by the country.
The bank said in its Asian Development Outlook 2021 report the growth figure could jump to 4 percent in 2022 if the COVID-19 vaccination rollout was successful and economic stabilization measures were properly implemented.
“It is vital for Pakistan to continue to combat the pandemic by rapidly deploying vaccines and continuing with reforms to support economic recovery, including strengthening social protection and supporting the private sector,” the bank’s acting country director for Pakistan, F. Cleo Kawawaki, said.
The report said Pakistan’s industry appeared poised for robust growth led by manufacturing and construction while services were also expected to rebound as retail and trade picked up.
It added that inflation was projected to come down to 8.7 percent during the year, partly reflecting an expected improvement in food supply, subsidies for wheat and sugar, and closer price monitoring of essential commodities.
The bank maintained that strong support for small and medium-sized enterprises (SMEs) was needed to stimulate growth and ensure jobs for young people entering the labor market.
“Improving access to finance for small and medium-sized enterprises is essential to unlocking business opportunities and stimulating new jobs,” Kawawaki continued.
The bank said licensing and registration processes needed to be simplified to facilitate the movement of informal SMEs into the formal sector, adding that digitalization could also expand access to financial services and export markets.
Pakistani economy expected to grow by 2% this year, Asian Development Bank says
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Pakistani economy expected to grow by 2% this year, Asian Development Bank says
- Growth rate likely to accelerate to 4 percent in 2022 given an effective COVID-19 vaccine rollout
- ADB annual report says inflation in Pakistan projected to come down to 8.7 percent in coming months
China backs Pakistan in fight against militancy after deadly Balochistan attacks
- China is a major ally and investor in Pakistan and has pledged over $65 billion in major infrastructure projects, including in Balochistan
- Chinese Foreign Ministry spokesperson Lin Jian says ‘we mourn for lives lost, and our hearts go out to injured and those who lost loved ones’
ISLAMABAD: China condemns the recent attacks that killed more than 200 people in Pakistan’s southwestern Balochistan province, a Chinese foreign ministry spokesperson said on Tuesday, reaffirming Beijing’s support for Pakistan in its fight against militancy.
The Baloch Liberation Army (BLA) group launched coordinated attacks in several cities across Balochistan on Saturday, killing 33 civilians and 17 security personnel. Officials said 117 militants were killed in skirmishes and follow-up operations.
Balochistan, which borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces, foreigners and non-local Pakistanis and kidnap government officials.
China is a major ally and investor in Pakistan and has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC).
“China strongly condemns the [Balochistan] attacks... We mourn for the lives lost, and our hearts go out to the injured and those who lost their loved ones,” Chinese Foreign Ministry spokesperson Lin Jian said at a press briefing on Tuesday.
“China firmly opposes any form of terrorism and will as always firmly support Pakistan in combating terrorism, maintaining solidarity and social stability, and protecting the safety of the people.”
Chinese nationals working in Pakistan have often been targeted by militants, particularly in the southwestern Balochistan province, where China is developing a deep seaport that is touted as the crown jewel of CPEC.
Interior Minister Mohsin Naqvi said last week the attacks, claimed by the separatist Baloch Liberation Army (BLA), were planned from India. New Delhi rejected the allegation as “baseless,” saying Islamabad was attempting to deflect attention from its internal challenges.
Balochistan is home to vast reserves of minerals and hydrocarbons. Separatist militant groups such as the BLA blame Islamabad for exploiting Balochistan’s natural resources and denying locals a share in them. The military and civilian government reject these allegations and say they are investing in the province’s development.
