In a promising start to the fiscal year 2023-24, the industrial landscape witnessed a commendable growth of 2.48% in the first quarter compared to the same period the previous year. The latest economic data reveals that various sectors have contributed to this upswing, with mining and quarrying taking the lead with a notable 2.15% expansion in quarterly production. The positive momentum is corroborated by the Quarterly Industrial Monitoring (QIM), which indicates a growth of 0.68% in the Large-Scale Manufacturing (LSM) sector during the first quarter of FY24. This signals a robust performance in the core industries that form the backbone of the economy. The mining and quarrying industry emerged as a key player, showcasing a 2.15% growth based on quarterly production data. This growth is evidence of the sector's resilience and strategic advancements. The extraction and processing of mining products have contributed significantly to the overall economic surge.

On a parallel note, the construction industry's outlook is promising, with indicators pointing towards growth. The production of cement, a crucial construction component, has seen a substantial uptick of 15.38% in 1QFY24 compared to the same quarter last year. Other construction indicators also showed positive trends, further strengthening the industry's position in the economic landscape. Despite a marginal increase of 0.08% in electricity generation and distribution, gas distribution and water supply, this sector plays a vital role in sustaining the economic momentum. Reliable access to utilities is fundamental for the smooth functioning of various industries and sectors. However, the iron and steel sector faced a slight setback with a negative growth rate of 2.20% during 1QFY24. Nevertheless, the impact of this decline was mitigated by the positive performance of other indicators within the overall industrial framework.

Talking to WealthPK, Shahid Javed, a senior economist at the State Bank of Pakistan, said that in the context of LSM, the 0.68% growth indicated by QIM was a significant metric. "It suggests a robust performance in key industries that form the backbone of our economic framework. The positive momentum in the construction sector, particularly the 15.38% increase in cement production, signals buoyancy in infrastructure development and construction activities." He said despite the marginal 0.08% growth in electricity generation and distribution, gas distribution and water supply, this sector's role in sustaining other industries couldn't be overstated. "Reliable utilities are crucial for the smooth functioning of various economic activities." The SBP economist stressed that the negative growth of 2.20% in the iron and steel sector didn't raise concerns. "It's essential to analyse the contributing factors behind this decline and strategise measures to address them. Nonetheless, the mitigating impact of positive performance in other indicators reflects the diversified nature of our industrial landscape."

"As we navigate the upcoming quarters, it is imperative for policymakers and industry stakeholders to capitalise on the positive trends, address challenges and foster an environment conducive to sustainable growth. The data provides a comprehensive snapshot of our economic landscape, offering valuable insights for informed decision-making and strategic planning moving forward," Javed stressed.

Credit: Independent News Pakistan (INP)