According to the finance ministry, the reappearance of high number of coronavirus cases can have a negative and risky effect on the economy which had a promising outlook.
Other than this, the inflation will remain on a higher level and imports will be increased as well along with the risk to the economy.
Economic recovery and development was seen expected but the second wave of coronavirus might lead to some different outcomes regarding the economy which will not be much good for it.
The ministry said: “There are downside risks to the outlook, with the resurgence of the Covid-19 infection as being a major risk. Still, Pakistan’s near-term economic prospects are promising subject to reducing uncertainty and restoring business confidence.”
There is no certainty regarding the pandemic and its future effects and there hasn’t been any confirmation on a successful vaccine so far. This adds on the future risk that might come.
The statement in report added: “In the absence of any adverse future shocks, the economy is on its way not only to rebound from the pandemic-related crises, but also to record a reasonable growth rate for the full fiscal year.”
“On the basis of the current economic scenario, the headline inflation is expected to remain within a range of 7.3 to 9.3% in October 2020,”
In September, the consumer price index based inflation had crossed over 9%.
