Daily Times

ISLAMABAD: The industrial sector of Pakistan is expected to grow up to 7.7 percent during current fiscal year, as compared to the growth of over 6.4 percent during the fiscal year 2015-16.

This projection is based on surveys and statistics collected by the ministries of finance and industries and the Planning Commission of Pakistan, Khaleej Times reported.

According to report, some of the pro-business steps the government has taken over the last three years of its rule include the supply of cheaper bank credit and raising forex reserves to ensure larger imports of capital goods, machinery and key raw materials.

The report said that government has also granted several tax incentives to domestic and foreign investors. These incentives were offered to sectors ranging from auto to telecom and IT sector. “It led to the auto sector becoming the number one industry. There is also renewed investor interest and fresh FDI inflow into IT and telecom,” the report added.

The government believed that the industrial sector will grow on the back of better energy supply. New foreign and domestic-financed energy projects coming on stream as well as new investment related to the $46 billion China-Pakistan Economic Corridor (CPEC) will help drive industrial growth, the report said.

According to report, the government, aided by the private sector, plans to ensure growth of 12.5 percent in the field of electricity generation, gas production and distribution.

The manufacturing, which is the soul of the industrial sector, is likely to record 6.1 percent growth, while large scale manufacturing is projected to grow 5.9 percent.

The mining and quarrying sector is projected to grow by 7.4 percent, while the construction and real estate sector is set to grow by 13.2 percent.

The State Bank of Pakistan, in its latest report on the state of the economy, said, “Acceleration in industrial growth from 4.8 percent in fY-15 to 6.8 percent in fY-16 is a positive sign. The growth was achieved despite sluggish global demand and it will perform better in FY-17.”