The industrial sector set a promising tone for the fiscal year 2023-24, registering a laudable 2.48% growth in the first quarter, outperforming the previous year’s mark. A closer look at the economic figures for 2024 unveils the diverse sectors propelling this upturn, with mining and quarrying at the forefront, achieving a commendable 2.15% increase in output.
This upsurge is encapsulated by the Quarterly Industrial Monitoring report, illustrating a 0.68% growth in the critical Large-Scale Manufacturing (LSM) sector during the same period. This upturn reflects strong foundational industries that fuel the economy’s robustness.
Mining and quarrying have proven pivotal, thanks to a strategic 2.15% growth in production. This sector’s forward strides bolster the overall economic swell. Similarly, the construction industry paints a bright picture, with cement production soaring by 15.38% in the first quarter, a clear sign of vibrant infrastructure progression.
Even with just a slight 0.08% uptick in electricity generation and distribution, plus gas and water supply, the sector’s importance to economic continuity is undeniable, ensuring vital industries function without hitches.
The iron and steel niche did encounter a 2.20% regression in the initial quarter of FY24, but this dip was largely offset by other positive industrial indicators. Speaking with WealthPK, State Bank of Pakistan’s senior economist Shahid Javed emphasized the importance of the observed LSM growth and the construction sector’s dynamic performance in cement production, denoting an uptick in infrastructure and building ventures.
Despite the minimal growth in utility output, Javed highlighted the sector’s indispensable support role. Conversely, he downplayed concerns over the fall in iron and steel, advocating for analyzing underlying causes to devise rectifying strategies. His advice for the subsequent quarters is to leverage positive trajectories, confront impediments, and cultivate a fertile environment for enduring expansion. Through comprehensive economic analyses, stakeholders can make informed decisions, ensuring strategic advancement in the industrial domain.
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