The International Monetary Fund (IMF) has warned Pakistan of potential effect on its economy due to a spillover effect of slowing down of Chinese economy due to coronavirus.
According to a report, the concerns by the visiting delegation of the Fund were put forward during a meeting on Feb 10.
Pakistani authorities, however, rejected any negative impact on its economy in totality and argued that there would be no negative impact, which means the GDP growth target of 3.3 per cent and inflation hovering around 11 to 12 per cent must remain intact.
However, Pakistan made it clear that the ongoing trade and the pace of completion on China-Pakistan Economic Corridor (CPEC) projects will not be impacted on account of the coronavirus outbreak originating from Wuhan.
The new coronavirus that emerged in central China at the end of last year has killed more than 1,000 people and spread around the world. The latest figures from China show there are more than 42,600 people infected in the country.
According to a report published in the local media, Adviser to Prime Minister on Commerce, Industries, Production, Textile and Investment Abdul Razak Dawood said during an interview that there was still a need to look at how the virus develops and whether it can be contained.
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“New interaction on business to business level for fresh trade with Chinese entrepreneurs may be affected but it will also be short-lived as the Chinese are workaholic and will soon be able to overcome the situation emerging out of the corona virus upsurge,” he noted.
Just a day before departing to Malaysia with Prime Minister Imran Khan on an official visit, Dawood remarked that shipment of exports and imports was being carried out and there was no impact of the virus on the said transactions under a trade agreement with China.