The Asian Development Bank (ADB) has placed Pakistan among the five worst-affected Asian economies as the inflow of workers’ remittances may be hit by a massive 27% due to loss of jobs and drop in income of expatriates, mainly in the oil-producing and exporting nations. Results show that the Covid-19 impact on remittances ranges from a 5.2% decline from baseline remittances in 2018 for the least-affected economy to almost a 30% decline for the most-affected one. The ADB placed Pakistan on the fourth number among the likely five worst-affected Asian developing economies after Nepal, Tajikistan and Bangladesh. “The current account deficit of $2.9 billion (1.1% of GDP in FY20) will double if the remittances fall only 10%. “The comparatively low oil prices will offset the impact of any fall in remittances,” he said.

Source: The Express Tribune August 04, 2020 03:33 UTC