Economic activity in Pakistan got bad notably in the fiscal year 2020 due to COVID-19, recording a negative growth of 0.5 percent.
According to the International Monetary Fund (IMF), activity rebounded strongly in the fiscal year 2021 with growth preliminary estimated at 3.9 percent.
The IMF in its updated report, “Policy Actions Taken by Countries,” which reviewed various steps Pakistan has taken to deal with the COVID-19 crisis, stated that in mid-March 2021, the third wave of infections started to emerge, with a steep rise in the number of cases and the positivity rate (exceeding 5,000 daily cases and 10 percent in the second half of April 2021, respectively).
More recently, after Eid celebrations in mid-May 2021, indicators point to a moderation in the rate of infection, with the number of new daily cases falling below 3,000 and the positivity rate falling below five percent.
It further stated that in mid-May 2021, authorities further strengthened restrictions, specifically for the week-long Eid celebrations. New measures consisted of banning inter-city transport, imposing lockdowns on markets, businesses, restaurants, parks, banning religious processions, and limiting the number of inbound flights for two weeks.