Daily Times

The Pakistan Industrial and Traders Associations Front Chairman Mian Nauman Kabir has stated that a National Industrial Growth Strategy is essential on part of the government with ownership at the highest level, as the growth of large-scale manufacturing (LSM) industries has slowed down to 1.2 percent in August 2020.

Mian Nauman Kabir said that the industry can pick up pace only with the implementation of envisaged policy measures. The plan should anticipate the private sector’s investment to lead the revival of economic activity with the help of necessary policy and regulatory support through public sector. However, in the high production of cost, it is unlikely that private sector can trigger economic expansion or increase investment.

He said that industrial slowdown has broken the momentum of fast economic recovery, which the government was claiming after the end of first wave of coronavirus.

Mian Nauman Kabir said that the sluggish LSM output will heighten the risk of a prolonged economic slowdown besides increasing unemployment in the country.

Higher inflation due to currency depreciation and imposition of indirect taxes has also adversely affected purchasing power of people.

He said that Prime Minister had promise of creating 10 million jobs and constructing five million homes at affordable prices – the promises that remain unfulfilled so far. With current sluggish economic growth, there will be increase in poverty and unemployment.

According to reports, in August out of 15 major industries, eight recorded negative production growth while output of seven major industries showed 1.9 percent to 15 percent growth on a year-on-year basis.

The LSM had shown a 5 percent year-on-year growth in July, which raised hopes for a quick recovery after the large industrial sector contracted more than 10 percent in the previous fiscal year.