Growth in sectors in Pakistan even during Covid 19

Pakistan has been observing a decline in revenues and sales in various sectors for years and been observing many revamp strategies and attempts to improvise revenue-generating model but due to internal lack of implementations of policies, lack of pro-growth policies and corruption, weak exchange rate and lack of equity couldn’t make it happen. 

Ever since this pro-Pakistani government came, we have observed new hikes in foreign direct investment and also rise in growth in all revenues of all sectors of Pakistan. The three main sectors of the economy are agriculture, fishing and mining and then manufacturing sectors as well. Now, this sector has become a prime performing sector which includes cement, autos, fertilizers, steel, chemical, food, textile, OMCs, power, and tech.

As per official data, cement has observed 71% positive growth as compare to last few years, the Automobile industry has observed 67% growth, fertilizer has observed 56%, steel has 41%, the chemical has 32%, Food has 31%, textile has observed 23%, OMCs has 14%, power has observed 12% and technology has observed 8%. 

As per the State Bank of Pakistan’s projected growth rate in revenues is expected to rise by 3.7% and International Monetary Fund and World Bank expected it to be between in the range of 1.3% and 1.5% for the fiscal year 2020-2021. The net medium-term growth rate is averaging 2.2% for fiscal year 2021-2023. 

The reason, why all sectors have observed a boom, is an investment in equity by foreign investors and restructuring of all government sectors. Pakistan is naturally rich arable land that has so many untapped treasures and producing agricultural products includes sugarcane, wheat, rice, cotton, and clothing lines that are exported to many countries. 

Due to increase in exports, balance of payments has seen real shift from losses to break even and now to profits and it is expected that profits will be increasing. In fiscal year 2020, Pakistan entered into IMF- Extended fund facility for 39 months which gained associated adjustments that are improvising imbalance payments, microeconomics and macroeconomics stability, fiscal consolidation and all. 

Especially, measures adopted by the recent government in response to COVID-19 leads to contraction in the economy, massive jobs losses, many people came below the poverty line of $1.90 PPP per day, but still due to the government’s prompt measures to cover fall in economy and actions to cover up the deficit and take it up to progress track has not just been beneficial rather it was appreciated by the world bank as well. 

Collectively Pakistan has been put on rising and growing trends and overall, every sector has seen growth even Covid hit it hard.