Pakistan economy would be contracted sharply due to COVID-19, says IMF Representative Teresa Daban

April 20, 2020 (MLN): IMF Representative in Pakistan, Teresa Daban Sanchez while addressing a seminar has said that owing to multiple challenges faced by Pakistan amid COVID-19 pandemic, the economy would be contracted sharply.

Furthermore, inflation might touch 11.3 percent during the ongoing fiscal year and the country’s expenses are expected to increase by Rs 700 billion.

In addition to this, tax collection likely to be reduced by Rs 900 billion, she added.

She said that prior to COVID-19, the Pakistan economy was poised to strengthen as the reforms and steps were taken place to keep economy on track, she said.

The economy was on road for stabilization, as the tax collection was increasing, external imbalances had been significantly reduced, the growth was projected at 2.4 percent in FY 2020 and the current account deficit was expected to narrow, but after COVID-19 the economic activity is expected to contract, she added.

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