Islamabad June 14 2024: The country’s industrial sector is expected to recover in fiscal year 2024-25 with a targeted growth of 4.4 percent on the back of expected Large Scale Manufacturing (LSM) growth of 3.5 percent.
“Industrial sector is expected to get boost from improved inputs and energy supplies on the back of anticipated fall in global oil and commodity prices, further easing of import restrictions, higher public sector expenditure, stability in exchange rate and a decline in interest rates,” says Annual Plan for 2024-25.
According to the plan, owing to these factors, prices of construction material are expected to decrease which will support the construction industry to achieve growth target of 5.5 percent in FY 2024-25.
Meanwhile, the services sector is also expected to grow at 4.1 percent, it says and envisaged growth of 3.1 percent in commodity producing sectors will complement the targeted growth in services sector.
Uptick of economic activity in industry especially manufacturing sectors will largely translate into better growth in wholesale and retail trade and transport, storage and communications.
According to the Annual Plan, total investment-to-GDP ratio is expected to increase from 13.1 percent in FY 2023-24 to 14.2 percent in FY 2024-25 due to expected economic turnout, improved business environment and political stability.
Fixed investment is expected to grow by 27.6 percent on nominal basis, whereas as a percentage of GDP, it is expected to increase from 11.4 percent in FY 2023-24 to 12.5 percent in FY 2024-25.
National savings are targeted at 13.3 percent of GDP in FY 2024-25, according to the plan.
