Encouraging LSM figures
The output in the large-scale manufacturing sector of the Pakistan economy has increased by 7.45% from February to July period of the ongoing fiscal year. The credit for this encouraging growth level goes to our economic managers and the resilience of our people, as they have achieved this notable upturn in the midst of the long-persisting coronavirus pandemic. This turnaround will likely have a positive multiplier effect on most sectors of the economy. The 2.69% rise in the output of the textile sector, a significant contributor to export earnings, would considerably undo the impact of the decline in cotton production. In contrast to this growth in the textile sector in the first eight months of the current fiscal year, the sector had registered the rise of a mere 0.33% in the same period of the previous fiscal.
Undeniably, the PTI-led government’s emphasis on the housing sector has started to give dividends in the form of increased production of cement driven by a rise in its demand by the construction industry. In the first nine months (July-March) of this fiscal, local dispatches of cement increased by 17% over the corresponding period of fiscal 2020-21. This sector posted the record monthly growth of 44.39 million tonnes in March this year, as sales jumped to 5.77 million tonnes this month as compared to 3.77 million tonnes in March of the previous year, due to increasing local consumption and export of the commodity.
The growth of 14.66% in the automobile sector signifies a robust recovery in this sector because in the corresponding period of the previous year it had experienced a contraction of 35.99%. Improved revenue collection in recent months has also helped the economy gain ground. Of the 15 LSM sectors registering growth, a 15% rise in the food segment and of 5.66% in fertiliser point to a turnaround in the economy. The central bank says economic indicators are strong, so there is no point in being panicked by forecasts floating around.
Published in The Express Tribune, April 16th, 2021.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.