ADB, in a supplement to its Asian Development Outlook (ADO), said Pakistan’s economy was on the path to recovery before COVID 19 and a national lockdown initiated on 1 April.”It is projected to contract by 0.4 percent in FY2020 (ending 30 June 2020) as the outbreak further restricts economic activity,” the bank said”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 2.0 percent in FY2021.”The ADB also slashed its growth forecast for developing Asia this year to 0.1 percent from 2.2 percent to reflect the impact of the lockdowns on economic activity due to the coronavirus pandemic. The ADB kept its economic growth forecast for developing Asia for next year at 6.2 percent. “Developing Asia will barely grow in 2020 as containment measures to address the coronavirus disease (COVID 19) pandemic hamper economic activity and weaken external demand,” the bank said.”Economies in Asia and the Pacific will continue to feel the blow of the COVID 19 pandemic this year even as lockdowns are slowly eased and select economic activities restart in a ‘new normal’ scenario,” said ADB Chief Economist Yasuyuki Sawada.”While we see a higher growth outlook for the region in 2021, this is mainly due to weak numbers this year, and this will not be a V shaped recovery.

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