Economic Overview from Production Perspective

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This article will provide you with the economic overview from production and growth perspective. It consist on brief information of the LSM performance specifically steel sector and textile industry of Pakistan.

Pakistan is facing high inflation these days. In the current market scenario the price of almost all the commodities have increased with a greater margin. This has increased the cost of living for most of the people. Despite such a price hike the overall industrial performance is good.

Production in Textile sector

The performance of steel sector, textile industry and automobile majorly contributed in the GDP of an economy. The large scale manufacturing (LSM) contributed to almost 7.4% during the fiscal year. On the other hand, the textile industry of Pakistan recorded an increase in the production of 2.8%. After the cancellation of textile orders from India, Pakistan got a good opportunity to generate a revenue. At present the textile industry of Pakistan is running on its full capacity. This also shows that there is a margin of growth and further expansion in textile industry of Pakistan.

Production in Steel sector

Similarly the steel sector is also performing very well and there is an increase in the production of 18.4%. However, the steel price is also increasing with high margins and it is not yet stable. The boom in steel sector is due to the increase of construction activities. Further the government has also launched housing projects for low income people.

Production in other sectors

The production in tobacco industry has increased with more than 50%. Likewise, the food sector recorded an increase in growth of 1.3%. Chemical sector grew with 2.6% and leather grew with 6.8% during the fiscal year. Paper and port also contributed to 8.3% increase in the production.

From production and growth perspective, the performance of the local market is good overall. However, the prices are out of control which is making cost of living higher. But it is expected that the prices will be soon stable after the intervention of IMF.

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