Pakistan may fall into recession: World Bank

The World Bank today (Sunday) has asserted that Pakistan could fall into recession due to the ongoing coronavirus pandemic, which has killed more than 80 people across the country.

According to a report of the World Bank on South Asia, “The region was on course for its worst economic performance in 40 years, because of coronavirus.” The report also stated that Pakistan, Afghanistan and the Maldives are expected to fall into recession.

The World Bank said, “Pakistan, which has already experienced low growth rates in recent years, could well fall into a recession. With 1.8% population growth, that would imply a painful decline in per-capita income.”

The report also warned that India, Bangladesh, Pakistan, Afghanistan, and other smaller nations have so far reported relatively few coronavirus cases but experts fear they could be the next hotspots.

“South Asia finds itself in a perfect storm of adverse effects. Tourism has dried up, supply chains have been disrupted, demand for garments has collapsed and consumer and investor sentiments have deteriorated,” the report said.

Commenting on the countries, the report warned that the Maldives could be the worst-hit region in South Asia where the collapse of tourism will result in gross domestic output contracting by as much as 13 percent. Afghanistan could shrink by as much as 5.9% and Pakistan by up to 2.2%, the report added.

The World Bank also warned that the pandemic would reinforce inequality in the region, with the pandemic hitting informal workers with limited or no access to healthcare or social safety the hardest.