Implementation of China Pakistan Economic Corridor (CPEC), increasing manufacturing, and infrastructure projects in the West-Central Asia Zone are strong factors that will boost Pakistan’s economy in 2016.
According to Khaleej Times, large scale manufacturing output rose to 3.9 per cent in the first quarter of the fiscal year 2016 from 2.6 per cent in the corresponding period of FY-2015.
According to the report, State Bank of Pakistan indicated some improvements that were already visible from the changes in the key macroeconomic indicators.
“Economic activity seems to be gearing up as LSM has recorded a noticeable increase over the last year,” it added.
The SBP also indicated the sectors, which were performing well. It said that a large number of projects would also benefit “due to the progress in implementation of the CPEC projects”.
The first phase of CPEC with an investment of $46 billion is slated to be completed by end-December 2017 or early 2018, according to Minister for Planning and Development Ahsan Iqbal.
“Some of the projects are already underway. They include construction of the Gwadar Port-related projects in South-West Pakistan, on Arabian Sea and Straits of Hormuz,” the report said.
Some two dozen huge industrial areas have been identified to establish industries, banking, energy and service projects to be located from Gwadar to China as part of the CPEC.
The SBP also reported that the economy is likely to benefit from improvement in the security conditions and successful and continued fight against terrorism, better availability of electricity and gas, lower cost of imported indusial raw materials and the historic low interest rates.
The SBP report noted a marked improvement in the security conditions, better energy management, and the persistently low global commodity prices.
The business, particularly foreign investors and companies operating in Pakistan, are happy with their prospects and profits.
According to the report, Overseas Investors Chamber of Commerce Industry (OICCI) President Atif Bajwa said that their latest Perceptions and Investment Survey 2015 indicated that 82 per cent of the members foresaw continuing growth in their business and were generally committed to making further investments in Pakistan.
The survey also indicated that the OICCI members planned to invest $3 billion in their business in the near future.
