IMF acknowledges Pakistan’s Economic Growth

June 7, 2021

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IMF has acknowledged the economic growth in Pakistan after Pakistan witnessed deterioration in the economy in FY2020 due to Covid-19, which recorded negative growth of -0.5 percent; however, activity rebounded sharply again in fiscal 2021, with initial growth estimated at 3.9 percent, according to the International Monetary Fund (IMF).

The IMF, in its updated “Policy Measures taken by Countries” report, which examined various measures taken by Pakistan to address the Covid-19 crisis, stated that a third wave of infections began to appear in mid-March 2021, with a sharp increase in cases and positivity rates cases per day and 10 percent in the second half of April 2021).

Recently, after the celebration of Eid in mid-May 2021, indicators point to a modest rate of infection, with the number of new daily cases falling below 3,000 and the positivity rate falling below five percent.

The report has added that by mid-May 2021, the authorities had tightened restrictions, specifically to celebrate one week of Eid.

New measures include a ban on inter-urban transport, the introduction of closures in markets, businesses, restaurants, parks, a ban on religious parades and limiting the number of incoming flights to two weeks.

These restrictions were practically removed by the end of May 2021 by resuming trade and transportation activities.

The Pakistani government aims to vaccinate 70 million people by the end of 2021 and to fully vaccinate 2.1 million people by June 2, 2021 and partially vaccinate 3.6 million people.

The report also discussed various stimulus measures taken by State Bank of Pakistan in the wake of COVID19 and acknowledged its impact on the economy.