KARACHI: Moody’s investor services warns of annual recession of Pakistaneconomy over coronavirus pandemic.
Pakistan is expected to face its first annual recession in fiscal year 2020due to the ongoing and worsening coronavirus pandemic, credit rating agencyMoody’s Investors Service said in a forecast issued late Wednesday.
The country’s financing needs were also expected to rise significantly,while its real — or inflation-adjusted — gross domestic product (GDP) wouldlikely fall 0.1-0.5% as well as opposed to the International MonetaryFund’s (IMF) projected 1.5%, it said, underscoring that this would markPakistan’s first annual recession.
The Prime Minister Imran Khan-led government had last month approved aRs1.2-trillion relief and stimulus package to cushion the virus-causedeconomic impact.
It includes tax incentives for businesses, exports, and the health sector,as well as support to households, which were given financial assistance viathe Ehsaas Emergency Cash Programme.
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That relief package was followed by the IMF’s $1.4-billion Rapid FinancingInstrument (RFI) to Pakistan on April 16, $588 million from the AsianDevelopment Bank (ADB) and the International Development Association (IDA)and a debt relief offer from the G20 countries.
All of these, the credit rating agency added, would help slash financingrisks.
