FPCCI stresses continued growth of LSM The Express Tribune

Lahore

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has stated that a positive growth in large scale manufacturing (LSM) will help in achieving the annual economic growth target, apart from if employment continues in the coming months. Will be created.

As per the data, LSM production registered a significant growth of 7.65% in September, in addition to a 4.8% growth during the first quarter of the current financial year.

Addressing a delegation from various industrial sectors, FPCCI President Mian Anjum Nisar said, “The growth of the industry has shown a ray of hope for the revival of economic activities in the country.” Expressing concern, he said that the data of October 2020 could be important for maintaining the pace of industrial production during the second wave of Kovid-19 in the country.

He said that during the year 2019-20, LSM production declined by 10.17% year-on-year. Industrial production is now clearly reflecting a resurgence in economic activity in Pakistan after suffering losses from the coronavirus epidemic mainly in the construction, sugar, automobile, and pharmaceutical sectors.

For the current fiscal year, the government had set an economic growth target of 2.1%, which would improve the current economic situation but not enough to generate employment for the growing population.

Nisar said the steep fall in interest rates and reduction in duties on raw materials are expected to lead to a further jump in economic activity in the current financial year, as manufacturing activity showed that more than half of the sub-sectors in LSM grew in September Huh.

He said that development has broken a cycle of continuous contraction in the last one year. “Big businesses are suffering the brunt of high interest rates, issues with the Federal Board of Revenue (FBR) and high energy prices,” he said.

The FPCCI chief called for out-of-the-box solutions for economic growth, as the Kovid-19 outbreak adversely affected the world’s economy as well as Pakistan’s trade and industrial sectors.

Nisar suggested that the government should formulate long-term and consistent policies to revive the industry and significantly improve exports, as Pakistan’s exports remain stagnant, unlike regional countries.

“Some obstacles to industrial development include cost of production, poor governance, obsolete technology, low productivity, lack of competition, supply shortages and energy issues,” he said.

Published in The Express Tribune, 22 Novembernd, 2020.

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