Report by Engineering Post
Pakistan’s manufacturing sector is one the main sectors of the national economy and has played a significant role in the country’s economic growth with a contribution of 11.89 percent to the overall Gross Domestic Product (GDP) in 2023-24.
Textiles and Apparel industries have the most weight in the Quantum Index Manufacturing 2022-23 i.e. 24.7 percent. It is a leading sector in the country’s exports with a share of around 60 percent. However, the contribution of the manufacturing sector to the national GDP was reportedly stagnant i.e. 12 percent due to a lack of diversification in the products and markets, inconsistent policies, tariff barriers, limited access to the credit (specially to the Small Manufacturing Enterprises (SMEs), low productivity, high cost of doing business, high cost of energy and its supply constraints, inadequate infrastructure, quite obsolete technology, lack of innovation and research and development (R & D).
According to the information gathered from the sector sources, the Sector was somehow facing major challenges by not conforming to the internationally adopted best practices ( i.e. Industry 4.0 percent) and continued to still using traditional methods
Sector sources as well as the official quarters concerned should better adopt a strategic approach to address the key issues of the sector, enhancing productivity and competitiveness for making its export oriented with the commendable aim of increasing its GDP share and driving the economic growth.
