Meeting goal: Industrial sector expands 6.8%, beats target
Fast-track revival taking place in the country, survey says
Fast-track revival taking place in the country, survey says. PHOTO: AFP
ISLAMABAD:
The industrial sector has beaten the 6.4% growth target for fiscal year 2015-16, with an expansion of 6.8%, reveals the Pakistan Economic Survey 2015-16.
The industrial growth in the current year was also way ahead of the 4.81% rise in the sector last year, “which is an indicator that an industrial revival is taking place on a fast track due to better policies of the government,” the survey said.
With a share of 21.02% in total size of the national economy - called the gross domestic product (GDP) - the industrial sector plays a major role in development of the economy due to its multi-dimensional direct and indirect linkages and spillover effect on other sectors.
Each sub-sector of the industrial sector has its own significance in the economy. Manufacturing, in particular, recorded a 5% growth in first nine months (Jul-Mar) of 2015-16 as opposed to 3.9% in previous year.
The growth was attributed to better availability of utility services, enabling environment, credit to private sector, foreign direct investment, capital market gains, etc. However, according to the survey, this sector suffered in the past because of unavailability of desired inputs and the major hurdle to growth was power shortages.
Manufacturing has been divided further into three components - large-scale manufacturing (LSM) with an 80.11% share in manufacturing and 51.84% in the industrial sector, small-scale manufacturing with a 13.12% share in manufacturing and 8.49% in the industrial sector, and slaughtering having the remaining share in manufacturing. LSM expanded 4.7% during July-March of the current fiscal year against 2.81% last year, small-scale manufacturing grew 8.21% against 8.22% last year and slaughtering rose 3.63% compared to 3.35% last year.
Mining and quarrying accounts for a 14.19% share in the industrial sector and contributes 2.98% to the country’s GDP. It recorded a growth of 6.8% in July-March 2015-16 against 4% last year. This sub-sector also surpassed the targeted 6% growth on the back of improving investment climate in the country.
The output of iron ore, soap stone, marble, limestone, silica sand, shale clay, phosphate and serpentine rose 156.83%, 26.09%, 50.49%, 23.19%, 72.95%, 6.41%, 53.96% and 108.7% respectively. However, some areas showed a negative growth such as chromite whose production fell 3.85%, chalk down 64.85% and sulphur down 37.18%. The automobile sector grew 23.43% in July-March 2015-16 compared to 17.06% in the same period last year. The growth came mainly in the wake of 68.53% rise in light commercial vehicle production, 81.95% in buses, 29.73% in cars and jeeps, 41.68% in trucks and 17.73% in motorcyles. The only decline was in the production of tractors that dropped 38.63%.
A stable exchange rate, continuation of concessionary Apna Rozgar Scheme, appetite of new models lent support to the auto industry.
Published in The Express Tribune, June 3rd, 2016.
The industrial sector has beaten the 6.4% growth target for fiscal year 2015-16, with an expansion of 6.8%, reveals the Pakistan Economic Survey 2015-16.
The industrial growth in the current year was also way ahead of the 4.81% rise in the sector last year, “which is an indicator that an industrial revival is taking place on a fast track due to better policies of the government,” the survey said.
With a share of 21.02% in total size of the national economy - called the gross domestic product (GDP) - the industrial sector plays a major role in development of the economy due to its multi-dimensional direct and indirect linkages and spillover effect on other sectors.
Each sub-sector of the industrial sector has its own significance in the economy. Manufacturing, in particular, recorded a 5% growth in first nine months (Jul-Mar) of 2015-16 as opposed to 3.9% in previous year.
The growth was attributed to better availability of utility services, enabling environment, credit to private sector, foreign direct investment, capital market gains, etc. However, according to the survey, this sector suffered in the past because of unavailability of desired inputs and the major hurdle to growth was power shortages.
Manufacturing has been divided further into three components - large-scale manufacturing (LSM) with an 80.11% share in manufacturing and 51.84% in the industrial sector, small-scale manufacturing with a 13.12% share in manufacturing and 8.49% in the industrial sector, and slaughtering having the remaining share in manufacturing. LSM expanded 4.7% during July-March of the current fiscal year against 2.81% last year, small-scale manufacturing grew 8.21% against 8.22% last year and slaughtering rose 3.63% compared to 3.35% last year.
Mining and quarrying accounts for a 14.19% share in the industrial sector and contributes 2.98% to the country’s GDP. It recorded a growth of 6.8% in July-March 2015-16 against 4% last year. This sub-sector also surpassed the targeted 6% growth on the back of improving investment climate in the country.
The output of iron ore, soap stone, marble, limestone, silica sand, shale clay, phosphate and serpentine rose 156.83%, 26.09%, 50.49%, 23.19%, 72.95%, 6.41%, 53.96% and 108.7% respectively. However, some areas showed a negative growth such as chromite whose production fell 3.85%, chalk down 64.85% and sulphur down 37.18%. The automobile sector grew 23.43% in July-March 2015-16 compared to 17.06% in the same period last year. The growth came mainly in the wake of 68.53% rise in light commercial vehicle production, 81.95% in buses, 29.73% in cars and jeeps, 41.68% in trucks and 17.73% in motorcyles. The only decline was in the production of tractors that dropped 38.63%.
A stable exchange rate, continuation of concessionary Apna Rozgar Scheme, appetite of new models lent support to the auto industry.
Published in The Express Tribune, June 3rd, 2016.