Corrective initiatives jolt Pakistan's manufacturing sector.
The much-needed corrective measures taken to fix the faltering economy; rupee depreciation, hike in interest rate, raising electricity prices, and lately the lockdown, have badly hit the large-scale manufacturing (LSM) sector with major contraction in automobile, textile, petroleum, wood and electronic production in the ongoing fiscal year.
The policy measures added fuel to drive LSM downwards for the second consecutive year. The sector declined by 5.4 percent in the first nine months (July-March) FY20 compared to decrease of 2.34 percent in the same period last year, according to Pakistan Economic Survey FY2019-20 launched on Thursday.
The last three months of the current fiscal year ending June 30 were projected to create havoc in the sector and sub-sectors; as lockdown imposed to contain the coronavirus toned down demand next to nil for goods like cars, petrol, cement, steel and electronics. In addition to the policy measures, the expensive...
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