ISLAMABAD: The government has set the target for Industrial sector to grow by 7.3 per cent during financial year 2017-18.
According to official documents, manufacturing sector is targeted to grow by 6.4 per cent with LSM growth rate of 6.3 per cent, small scale & household manufacturing 8.2 per cent, construction 12.1 per cent and electricity generation & gas distribution by 12.5 per cent. Mining and quarrying sector is projected to grow by 3.5 per cent.
Industry is expected to show vigorous performance in 2017-18, as its various subsectors showed encouraging performance in 2016-17 such as cement, iron & steel, electronics, food & beverages and automobiles. The export stimulus package of Rs 180 billion for five manufacturing sector (textiles, carpets, sports goods, leather, and surgical instruments) is envisaged to enhance production and export earnings.
This package is targeted to increase the profitability in the selected sectors by giving them incentive of tax rebate to increase their export proceedings by 10 per cent.
Therefore, it is expected that improved energy availability, better law and order situation and lower interest rate will contribute towards achieving the target of industrial sector growth for 2017-18.
