Pakistan may need to dampen economic growth hopes - IMF

Pakistan may have to temper its economic growth expectations following a third wave of Covid-19 infections, an IMF official said on Thursday.

The IMF had forecast 1.5% GDP growth for the current fiscal year 2020-21 but then felt it could be higher after good data in January and February, IMF Mission Chief for Pakistan Ernesto Ramirez Rigo told reporters.

"Now with this third wave, perhaps we might be in a situation where we need to dampen a bit our expectations relative to the upside to the forecast," he said, adding that it was also becoming more necessary for Pakistan to adjust its annual budget.