Industry is driving economic growth, recovery in Pakistan Asad Umar
The ADB’s projections are in contrast to the government’s claim that Pakistan’s economy is recovering at the fastest pace in the region
ISLAMABAD, Minister for Planning, Development and Special Initiatives Asad Umar Tuesday said the industrial growth in the country was accelerating as economic recovery gathered pace.
In a tweet, the minister said large scale manufacturing grew by 5.46% in July to October 2020 as compared to same period last year.
“Growth in October was even higher at 6.66% compared to October last year,” he added.
Hammad Azhar, the minister for industries and production, said that at a time when the global economy is facing a period of a deep recession, “industry is driving economic growth and recovery in Pakistan”. Earlier in September, it was reported that the country’s economy may grow at a pace of 2pc in the current fiscal year. The Asian Development Bank (ADB), in a report, had stated that growth is forecast to “recover in fiscal year 2020-21 as economic sentiment improves with the expected subsiding of Covid-19 and the resumption of structural reform”.
The ADB’s projections are in contrast to the government’s claim that Pakistan’s economy is recovering at the fastest pace in the region. In the last fiscal year, Pakistan’s economy contracted 0.4pc compared with 20.5pc contraction in the Maldives and 9pc contraction in India. The ADB’s 2pc economic growth projection is in line with Pakistan’s growth target of 2.1pc.
The ADB said its forecast of 2pc gross domestic product (GDP) growth assumes that Covid-19 impact will subside by the end of 2020. The regional lender had also noted that agriculture is expected to continue to lend impetus to GDP growth. Growth in industry is forecast to improve in FY21, led predominantly by construction and small-scale manufacturing. Spurred by improved growth in agriculture and industry, coupled with an expected improvement in domestic demand overall, services should also contribute to growth in the current fiscal year, according to the report by ADB.