Report by Engineering Post
During FY 2024, except for a few, most industries showed a decrease in Gross Fixed Capital Formation (GFCF) compared to FY2023.
During FY 2024 GFCF in the Public Sector has been estimated at Rs 508.8 billion against Rs 545.4 billion during FY 2023, registering a decline of 6.7 percent.
The major industries with negative growth, according to figures now available , in FY 2024 Oliver FY 2023 are mining and quarrying (27.5 percent due to Oil and Gas Development Company (OGDC), electricity, gas and water supply 7.5 percent due to WAPDA, construction 25.2 percent due to development authorities and information and communication 11.5 per cent due to PTCL and Ufone on machinery and equipment.
However, public sector enterprises engaged in manufacturing 48.0 percent due to National Radio & Telecommunication Corporation and National Refinery and transportation and storage 2.2 percent due to Pakistan National Shipping Corporation, PARCO, National Highway Authority and Civil Aviation Authority (CAA) had reported growth in provisional estimates.
The Gross Fixed Capital Formation (GFCF) changes in inventories and net acquisition of valuables. The GFCF is a change in fixed assets used in the production process for more than one year. Whereas the changes in inventories are calculated as a change in the value of physical stocks of raw material, work in progress, and finished goods held by the industries and the producers of government services. Finally, valuables are not used primarily production or consumption but are held as stores of value over time to keep the production process smooth.
