Significant growth of Large Scale Manufacturing (LSM) is essential for economic development. Therefore, Government should devise an economic revival plan for boosting growth of LSM sector.
LSM has shown minor growth of 1.02 percent in the first ten months of the ongoing financial year 2011-12 over the corresponding period last year, reflecting overall weak performance of the economy, growth oriented measures were required to be taken to pull the ailing industrial sector out of crisis, Asad Farid, Acting President Islamabad Chamber of Commerce and Industry (ICCI) has said in a statement.
He was responding to the reports that the growth of LSM sector has drastically reduced by 12 percent in April 2012 as compared to the month of March 2012 which has showed that LSM has performed below its potential.
ICCI Acting President said that high levels of inflation, high interest rates and frequent and prolonged power outages have slowed Pakistan’s industrial growth. He was of the view that these issues are taking heavy toll of our economy as our country is one of the bottom countries in South Asia as for the GDP growth rate in the region is concerned against India posted 9.7 percent GDP growth last year, Bangladesh 6.2 and Sri Lanka 6.1 percent.
Asad Farid said that manufacturing sector should be given priority and special attention for its survival and sustainable growth. He said that manufacturing sector was bearing the brunt of heavy taxes, so he called upon the Government for taking measures to give a boost to LSM growth.
ICCI President said Government should also provide support for the establishment of engineering related industries and help the businessmen in taking part in international engineering exhibition to provide them the opportunity to know internal emerging markets of engineering products and its potential. He said to achieve these objectives, Government in consultation with the private sector should develop a national plan for industrial growth.