By Ayesha Mudassar

ISLAMABAD, Aug 10 (INP-WealthPK): Pakistan’s expanding large-scale manufacturing (LSM) sector is a demonstration of the country’s efforts to enhance industrialization.

According to experts, Pakistan's manufacturing industry has enormous potential to excel in the worldwide market.

Talking to WealthPK, Eng. Asim Ayaz, Secretary of Auto Industry Development Committee (AIDC), stated that auto-manufacturing is amongst the top-performing sectors in the LSM thanks to the Auto Policy 2021-26 that encourages localization, value addition, and exports.

Ali Hassan from Pharma Natura Pakistan, a pharmaceutical company, said the government support will enable local manufacturers to attain self-reliance in terms of import substitution as well as significant export potential.

According to Dr Mahmood Khalid, a senior research economist at Pakistan Institute of Development Economics (PIDE), a robust manufacturing base would increase the country's ability to export goods, create job opportunities, and provide a revenue base for the future.

The production in first 11 months of the fiscal year 2021-22 as compared to the corresponding period of FY 2020-21 has increased in textile, tobacco, food, coke and petroleum products, automobiles, pharmaceuticals, iron and steel products, paper and board, chemicals, leather products, furniture, and electrical equipment.

On the other side, the production of beverages, rubber products, fabricated metal, and other transport equipment decreased during the period under review.

According to the Quantum Index of Large-Scale Manufacturing Industries (QIM), output increased by 21.4% for May 2022 compared to May 2021.

The LSM accounts for approximately 80% of the manufacturing sector, and contributes 9.73% to the gross domestic product (GDP), followed by small scale manufacturing, which accounts for 2.12% of GDP and 16.6% of sectoral share.

Textile production, which comprises 18.2% of the LSM, increased by 0.9%, food, beverages, and tobacco 2%, petroleum products 0.1%, chemicals 0.7%, during July-May 2021-22, compared to the same period of 2020-21.

Pakistan can provide competitive industrial goods in the coming years by addressing issues, developing clear policies to support technology upgradation, and encouraging exporters and export-oriented industries.

The assurance of growth in LSM is necessary for generating employment possibilities for skilled workers and attracting foreign investment.

Credit: Independent News Pakistan-WealthPk