Report by Engineering Post
According to the National Accounts Committee of Pakistan Bureau of Statistics (PBS), the industrial sector grew by 1.21 percent during the financial year 2023-24, falling short of the 3.4 percent target.
The manufacturing sector grew by 2.42 percent against a 4.3 percent target, Large Scale Manufacturing (LSM) by only 0.07 percent against a 3.2 percent target, and Small Scale Manufacturing by 9.08 percent against an 8.8 percent target.
Overall LSM growth was reported to be-0.10 percent from July to March 2023-24 as compared the previous year, according to the figures now available from official sources, with declines in Textile, Paper & Board, Tobacco, iron and steel products, electrical equipment, and automobiles. However, Food, Garments, Petroleum Products, Chemicals, Pharmaceuticals, Furniture had shown positive growth.
According to the sources concerned, Total Factor Productivity (TFP) and Gross Domestic Product (GDP) growth have somewhat been erratic since the 1970s, with TFP growth only around 2 percent over the last few decades, indicating lower competitiveness in the global market. Exports from July-February 2023-24 totaled US $ 20360 million showing an increase of 9.05 percent from the previous year, while imports had decreased by 11.81 percent to US $ 35.249 million. Textile and apparel exports had fallen by -0.65 percent, with mixed results in the value-added products.
The sector faced challenges including global demand contraction, liquidity issues, high policy rates, and disruption in energy supply.
