Industrial Sector growth projected at 7.7% during current fiscal year
ISLAMABAD : Industrial growth is anticipated to grow by 7.7 percent during the ongoing fiscal year as compared to the growth of over 6.4 percent during the fiscal year 2015-16.
Official sources said the industrial sector is expected to grow by 7.7 percent during 2016-17 on the back of better energy supply and planned investment under the China Pakistan Economic Corridor (CPEC).
The mining and quarrying sector is projected to grow by 7.4 percent while the manufacturing sector is expected to grow by 6.1 percent for 2016-17, large scale manufacturing sector is expected to grow at a rate of 5.9 percent, small and household manufacturing 8.2 percent, construction by 13.2 percent and electricity, generation and gas distribution by 12.5 percent.
Several energy-related fast-track projects under the CPEC are expected to complete in the next fiscal year. The LSM growth would also go up with the ongoing construction activities, infrastructure projects and improved energy supply with the import of the LNG and LPG and completion of early harvest energy projects under the CPEC.
Moreover, the aggregate demand is expected to be maintained, provided that the remittances keep flowing while the exploitation and exploration of huge mineral deposits of iron, coal, copper and gold would further boost the industrial sector. Demand for housing is also on the rise and both public and private sectors are working on housing schemes while these schemes are expected to result in increase in demand for cement and iron, substantially.
Overall, it is expected that improved energy availability, better law and order situation, lower interest rate with subdued inflation and continued macro-economic stabilisation would play a major role in achieving the next year’s target of industrial growth. It is pertinent to mention that growth of the GDP for 2016-17 is targeted at 5.7 percent with contributions from agriculture (3.5 percent), industry (7.7 percent) and services (5.7 percent)
Source : APP