ISLAMABAD: Manufacturing sector bounced back and Large Scale Manufacturing (LSM) posted 9 percent growth during July-March 2021, while there was 5.1 percent contraction at the same time last year said Minister for Finance and Revenue Shaukat Tarin on Thursday.
According to the Economic Survey the LSM expansion is broad based, reflecting production increase in major manufacturing sectors.
This is the highest period wise growth since FY 2007 supported by promising performance of Textile, Food Beverages and Tobacco and Automobile.
The Prime Minister construction package has also supported all other allied industries such as increased cement dispatches and iron and steel production.
On a year-on-year basis, LSM is exhibiting positive trajectory since July FY 2021 which indicates that the government’s proactive role has not even catered to the pandemic adversities rather made LSM to outperform its pre-COVID level.
The LSM has increased by 22.4 percent in March FY 2021 against 21.7 percent decline in the same month last year which was the time when pandemic had started hitting business activities.
It is encouraging to note that the year-on-year performance of LSM is improving as compared to previous years as well. Month-on-month performance has also been satisfactory as LSM showed 2.9 percent average growth during the current fiscal year.
Briefly, the manufacturing sector has been a major contributor in sustaining growth rate during FY 2021.
Despite the concerns raised by COVID-19, the manufacturing sector remained sound and resilient during FY 2021 on the back of well in time government initiatives.
Government’s thoughtful decision to resume the business activities and adoption of smart lockdown boosted the business sentiments and economy gained traction after witnessing a hefty decline in FY 2020. The targeted fiscal and monetary incentives accompanied by related support packages helped speed up the economic recovery.
The situation has further ameliorated by depreciation of US dollar against Rupee and launch of COVID-19 vaccine.
