A look at Industrial Sector performance 

Engineering Post Report

One of the  three key and important sectors of the national economy , Industrial Sector, failed  to come up to the expectations and achieve the planned target  and was hit the  hardest with around 3 percent contraction during FY2023.

The industrial sector comprising four  key sub-sectors i.e. manufacturing, electricity, gas and water supply, mining and quarrying   and construction took the brunt of massive devastation caused by floods and rails in July 2022  and was contracted by 2.94 percent.

Most of the shrinkage  , according to the information now available,  was due to 8 per cent  decline  in large -scale manufacturing ,which fall under manufacturing and has the  biggest share in the industrial sector., In contrast, large -scale manufacturing had registered growth rates of over 11 per cent  during the past year.

However, the four sectors  which showed  growth included  wearing apparel,  leather products, furniture  and sports goods such as football.

According to the experts, “The proliferation  of risks including the global economic slow-down and flood damages, coupled with the restrictions imposed by the State Bank of Pakistan’s  through its  restrictive policies such as high-interest  rates, import restrictions, and the closure of issuance of the Letters of Credit to correct the balance of payments and  control inflation had created  headwinds  for businesses , consumer confidence and investment during  the period under report”.

“Thus, the industry was weighed down by various domestic and external factors leading to a slowdown in its performance in FY2023”, they added. .The mining and quarrying sector remained negative at 4.4 percent during July-March   against a dip of 7 percent  last year, The development of  the mining sector had been hindered  by inadequate infrastructure,  lacking  technology and insufficient  financial resources.