Pakistan Industrial Sector Thrives On Pro-business Policies

ISLAMABAD,(UrduPoint / Pakistan Point News -29th Augst,2016) : Pakistan industrial sector is expected to grow up to 7.7 per cent during current fiscal year as compared to the growth of over 6.4 per cent during the fiscal year 2015-16.

According to Khaleej Times, this projection is based on surveys and statistics collected by the ministries of finance and industries and the Planning Commission of Pakistan. The report said that some of the pro-business steps the government has taken over the last three years of its rule include the supply of cheaper bank credit and raising forex reserves to ensure larger imports of capital goods, machinery and key raw materials. It said government has also granted several tax incentives to domestic and foreign investors.

These incentives were offered to sectors ranging from auto to telecom and IT. "It led to the auto sector becoming the No 1 industry. There is also renewed investor interest and fresh FDI inflow into IT and telecom," the report added. The government believes the industrial sector will grow on the back of better energy supply.

New foreign- and domestic-financed energy projects coming on stream as well as new investment related to the $46 billion China Pakistan Economic Corridor will help drive industrial growth. According to the report, the government, aided by the private sector, plans to ensure growth of 12.5 per cent in the field of electricity generation, gas production and distribution. Manufacturing, the soul of the industrial sector, is likely to record a 6.1 per cent growth.

Large scale manufacturing is projected to grow 5.9 per cent. The mining and quarrying sector is projected to grow by 7.4 per cent. The construction and real estate sector is set to grow by 13.2 per cent. The State Bank of Pakistan, in its latest report on the state of the economy, said: "Acceleration in industrial growth from 4.8 per cent in fy-15 to 6.8 per cent in fy-16 is a positive sign.

The growth was achieved despite sluggish global demand and it will perform better in fy-17."