Manufacturing Sector Bounced Back, LSM Posted 9% Growth: PES

ISLAMABAD, (UrduPoint / Pakistan Point News - 10th Jun, 2021 ) :Manufacturing sector bounced back and LSM posted 9.0 percent growth during July-March 2021, while there was 5.1 percent contraction in the same period last year.

According to the Economic Survey launched here by Minister for Finance and Revenue Shaukat Tarin on Thursday, the LSM expansion is broad based, reflecting production increase in major manufacturing sectors.

This is the highest period wise growth since FY 2007 supported by promising performance of Textile, food Beverages and Tobacco and automobile.

The Prime Minister construction package has also supported well all other allied industries such as increased cement dispatches and iron and steel production.

On year-on-year basis, LSM is exhibiting positive trajectory since July FY 2021 which indicates that government's proactive role has not even catered the pandemic adversities rather made LSM to outperform its pre-COVID level.

The LSM has increased by 22.4 percent in March FY 2021 against 21.7 percent decline in the same month last year which was the time when pandemic had started hitting business activities.

It is encouraging to note that year-on-year performance of LSM is improving as compared to previous years as well. Month-on-month performance has also been satisfactory as LSM showed 2.9 percent average growth during current fiscal year.

Briefly, manufacturing sector has been a major contributor in sustaining growth rate during FY 2021.

Despite the concerns raised by COVID-19, manufacturing sector remained sound and resilient during FY 2021on the back of well in time government initiatives.

Government's thoughtful decision to resume the business activities and adoption of smart lockdown boosted the business sentiments and economy gained traction after witnessing a hefty decline in FY 2020.

Targeted fiscal and monetary incentives accompanied by related support packages helped speed up the economic recovery.

Situation has further ameliorated by depreciation of US Dollar against Rupee and launch of COVID-19 vaccine.