Pakistani economy expected to grow by 2% this year, Asian Development Bank says

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.