Large-scale manufacturing grew by 5.46% during July to October: Asad Umar

Federal Minister for Planning and Development Asad Umar on Tuesday said the country's large-scale manufacturing grew to 5.46pc during the period of July to October 2020.

The minister added that the growth recorded during the month of October was "even higher at 6.66pc" versus October 2019.

"Industrial growth accelerates as economic recover gathers paces."

Hammad Azhar, the minister for industries and production, said that at a time when the global economy is facing a period of a deep recession, "industry is driving economic growth and recovery in Pakistan".

Earlier in September, it was reported that the country's economy may grow at a pace of 2pc in the current fiscal year.

The Asian Development Bank (ADB), in a report, had stated that growth is forecast to "recover in fiscal year 2020-21 as economic sentiment improves with the expected subsiding of Covid-19 and the resumption of structural reform".

The ADB’s projections are in contrast to the government’s claim that Pakistan’s economy is recovering at the fastest pace in the region.

In the last fiscal year, Pakistan’s economy contracted 0.4pc compared with 20.5pc contraction in the Maldives and 9pc contraction in India. The ADB’s 2pc economic growth projection is in line with Pakistan’s growth target of 2.1pc.

The ADB said its forecast of 2pc gross domestic product (GDP) growth assumes that Covid-19 impact will subside by the end of 2020.

The regional lender had also noted that agriculture is expected to continue to lend impetus to GDP growth. Growth in industry is forecast to improve in FY21, led predominantly by construction and small-scale manufacturing.

Spurred by improved growth in agriculture and industry, coupled with an expected improvement in domestic demand overall, services should also contribute to growth in the current fiscal year, according to the report by ADB.