The growth of LSM in Pakistan.

Byline: S. Kamal Hayder Kazmi

According to the Asian Development Bank (ADB) present report-2021 Pakistan's economic growth rebounded to 3.9 percent in FY2020-2021 and is predicted to reach 4.0 percent in FY2021-22, as business activity steadily resumed in the second year of the Covid-19 pandemic.

Experts identified that Pakistan's economy is predicted to continue recovering in FY2022, supported through stronger private investment, enhancing business activity, a steady vaccine rollout, and economic stimulus measures for FY2022.

Pakistan's economy is on the path to recovery, supported through promising growth in the industry and services sectors. The continued rollout of the Covid-19 vaccination programme, structural reforms, and the expansion of social protection programmes are all major to ensuring inclusive and sustainable growth.

Furthermore, fiscal incentives and strategies to raise export competitiveness, bolster the presentation of the manufacturing sector, and augment private investment will continue to play an instrumental role in strengthening the economic outlook.

Experts also identified that Pakistan's economic growth in FY2021 was supported through enhanced Covid-19 containment policies by the second and third waves of infections and continued accommodative monetary as well as fiscal strategies that accelerated the recovery across all sectors. According to the Pakistan Bureau of Statistics (PBS), the Large Scale Manufacturing (LSM) in Pakistan increased by 2.25 percent in July, reflecting a slowdown in industrial output.

The slowdown in the first month of the present financial year is in stark contrast compared to the previous few months when the industrial growth was in double digits with a claim of revival of industrial production after a slump due to a nationwide lockdown because of the pandemic. In the outgoing financial year, the LSM explained highest growth of 14.85 percent and the government of Pakistan claimed that a slum in industrial production has come to an end. On a month-on-month (MoM) basis, the big industry production contracted by 4.91 percent. Since July 2020, the Large Scale Manufacturing has rebounded after suffering months of a downturn on account of the pandemic, mostly in the automobile, textile, food, construction, chemicals, non-metallic mineral products and pharmaceutical sectors.

Experts also said that the production has witnessed raise in textile, pharmaceuticals, chemicals, automobiles, iron and steel...