"Government succeeded in efforts to overcome the energy crises," reads the Economic Survey 2015-16. Let's put it mildly - it has not. That said, credit where it is due, and the energy sector during the year did see a lot happening. The state of inertia has finally been broken. Not that all of what is "happening" has and will eventually materialize - but the fact that there is some direction itself is commendable.
The curtains on the Economic Survey 2015-16 were raised yesterday highlighting the missed growth target of 5.5 percent against actual growth of 4.71 percent. Delving into specifics, it was the agriculture sector that was blamed for the dart missing the board with the sector targeted to grow by 3.9 percent. But the sector performed poorly marking a 0.19 percent decline owing to the government's inability to revive the so called economic backbone of the country.
Farming economy hit hard on Pakistan's GDP last year. The government blamed the fallout on excessive rains and floods as well as a decline in global commodity prices, both of which hit hard on cotton and rice economies, but kept wheat economy rather flat.
Inflationary trends are picking up but the monthly CPI clocked down, whilst the monetary policy is unconventionally eased. The CPI in May registered an increase of 3.2 percent as against 4.2 percent last month. High base effect and seasonal correction in perishable items is making the Mays number counter intuitive - inflation declined by 0.2 percent from April index. The 11 month FY16 inflation average stood below 3 percent.
Local cars sales including jeeps and pickups reached 184,099 units up till April 2016; a 29 percent growth year-on-year, as per Pakistan Automotive Manufacturers Association (PAMA) - the highest since peak sales of 2006 and 2007; the year hasnt ended and we will soon be reporting numbers for May. As we reach the tail end of this year, it is prudent to talk about what the future holds and what the local automakers should have their eyes set on.
While its almost the close of FY16 - and soon experts and moguls would be getting ready for a retrospective slideshow of the fiscal year - National Electric Power Regulatory Authority (NEPRA) has released its annual State of Industry Report for FY15.
No news here; tractor sales are down. For the ten months ended FY16, tractor production was down 36 percent over last year, while sales were lower by 30 percent. The year might not even see 30,000 units of tractors being sold. Chairman of PAAPAM, Mumshad Ali told BR Research that 10 percent of the industry (vendors, parts manufacturers) has closed shops.