PIAF concerned as LSM records negative growth.
The Pakistan Industrial and Traders Associations Front, while showing serious concern over the continued decline in the large-scale manufacturing index, has stated that a National Industrial Growth Strategy from the government is essential with ownership at the highest level, as large-scale manufacturing (LSM) output shrank 10.3% in first 11 months of July-May of fiscal year 2019-20 while it contracted by 24.8% in May alone over the same month a year ago.
PIAF chairman Mian Nauman Kabir said that COVID-19 has adversely impacted the world economy as well as the Pakistan trade and industrial sectors.
In a joint statement with senior vice chairman Nasir Hameed and vice chairman Javed Siddiqi, Mian Nauman Kabir said that the large industrial sector, which had been shrinking even before the deadly pandemic hit the economy, further contracted by 10.3% in first 11 months of the previous fiscal year, underscoring the need for a review of economic policies.
The respiratory disease of Covid-19 had started impacting Pakistan’s economy from the third week of March this year. But large industries had been struggling even before the pandemic hit the economy.
Mian Nauman Kabir said that the industry can pick up pace in new fiscal year with the implementation of envisaged policy measures. The plan anticipates the private sector investment to lead the revival of economic activity with the help of necessary policy and regulatory support through public sector. However, in the high production of cost, it is unlikely that private sector can trigger economic expansion or increase investment.