Large-scale manufacturing recovery lifts prospects of economic development in Pakistan

• LSM growth hit 5.5% in the first four months of this fiscal year.
• Index is still lower than the pre-coronavirus time period, but economic growth expected
• PBS highlights nine sectors with positive growth in the first four months of the current fiscal year

ISLAMABAD: Pakistan expects to see positive economic growth after the recovery in large-scale manufacturing touched 5.5% growth in the first four months (July-October) of the fiscal year.

The LSM index, however, is still lower than it was before the COVID-19 outbreak.

The LSM output increased by 6.66% in October as compared to the same month last year. September saw a 3.95% increase.

Read more about the impact of coronavirus on Pakistan's economy

In the textile sector, growth in October 2020 increased by 2.4%, food and beverages saw an 8.6% increase, petroleum products a negative growth of 1.67%, pharmaceuticals 11.29%, non-metallic mineral products 24.48%, fertiliser 18.5% and cement 25%.

What does Pakistan Bureau of Statistics data say?

The Pakistan Bureau of Statistics’ data shows nine major sectors showed positive growth in the first four months of the current fiscal year.

This included the textile, food, beverages and tobacco, petroleum products, pharmaceuticals, chemicals, non metallic mineral products, fertilizer, paper and board and rubber products industries.

Read ADB's comments on Pakistan's economic recovery

Six sectors that showed declining growth in the first four months of this year compared to last year. These were the automobile, iron and steel, electronic, leather, engineering and wood sectors.

The government had envisaged a GDP growth rate of 2.1% for the current fiscal year 2020-21 against contraction of negative 0.4% for the last fiscal year.

The Ministry of Finance and its economic advisory wing expects more positive growth with improved industrial growth in the current fiscal year.