The resurgence of recent infection rates and slow vaccination coupled with high inflation rate and consolidation policies could impact Pakistan’s nascent and fragile economic recovery and worsen poverty situation, according to a World Bank report.
In its flagship ‘Pakistan Development Update-Navigating in Uncertain Times’ released on Tuesday, the World Bank said the country had been showing signs of a fragile economic recovery with a gradual resumption of economic dynamism and was expected to achieve growth rate of 1.3pc and strengthen to an average of 2.7pc in FY23.
The baseline economic growth forecast, however, is highly uncertain, especially given the third and more-contagious wave of the pandemic currently circulating in the country, it said. The “resurgence in infection rates and slow vaccination deployment poses downside risks to the economic outlook and near-term economic prospects are subdued”, it added.
