Industry to grow at 7.7pc during current Fiscal year

ISLAMABAD: The Industrial sector of the country is expected to grow at 7.7 percent during the ongoing fiscal year 2016-17 compared to the growth of over 6.4 per cent during the fiscal year 2015-16.

" In view of its higher growth rate during the current fiscal year (against last year's growth rate), the industrial sector is expected to grow by 7.7 per cent during 2016-17 on the back of better energy supply and planned investment under the China Pakistan Economic Corridor (CPEC)," official sources said.

The mining and quarrying sector is projected to grow by 7.4 per cent while the manufacturing sector is expected to grow by 6.1 per cent for 2016-17, the LSM's growth rate of 5.9 per cent, small and household manufacturing 8.2 per cent, construction by 13.2 per cent and electricity, generation and gas distribution by 12.5 per cent.

Several energy-related fast-track projects under the CPEC are expected to be completed in the next fiscal year, the sources added.

The LSM growth will also go up with the ongoing construction activities, infrastructure projects and improved energy supply with the import of the LNG and LPG and completion of early harvest energy projects under the CPEC.

Moreover, the aggregate demand is expected to be maintained, provided that the remittances keep flowing while the exploitation and exploration of huge mineral deposits of iron, coal, copper and gold will further boost the industrial sector.

Demand for housing is also on the rise and both public and private sectors are working on housing schemes and these schemes are expected to result in increase in demand for cement and iron, substantially.

Overall, it is expected that improved energy availability, better law and order situation, lower interest rate with the subdued inflation and continued macroeconomic stabilization will play a major role in achieving the next year's target of industrial growth.

It is pertinent to mention here that growth of the GDP for 2016-17 is targeted at 5.7 per cent with contributions from agriculture (3.5 per cent), industry (7.7 per cent) and services (5.7 per cent).