With rise in cement, fuel sales Pakistan economy picks up steam
As coronavirus momentum weakens in Pakistan, the country’s economy is finally gathering steam with sales of fuel and cement rising.
As per Bloomberg, the development comes on the back of growing sales and demand for cement, fuel, electronics, and automobiles.
“The growth is led by an aggregate demand push,” said Muzzammil Aslam, chief executive officer at Tangent Capital Advisors Pvt. The economist expects Pakistan’s economy to expand by 4 percent to 5pc this year doubling even the government’s target.
The government too has expressed optimism over the country’s recent economic performance. Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh while addressing the meeting of the business community organized by Overseas Investors Chamber of Commerce and Industry (OICCI) on Saturday said the economy was now moving forward on the right path after gaining stability due to Pakistan Tehreek-e-Insaf (PTI) government’s prudent and timely policies.
The government was confident to surpass the growth target set for the current fiscal year as the country was moving fast towards the right path on internal and external fronts, he added.
Meanwhile, as per the report, sales of cement have increased 38 percent from a year ago to 4.8 million tons in July, however, its sales dropped to 3.5 million tons in August. But experts expect demand for the product to rise after the government recently announced a package for the construction industry.
Furthermore, the sale of oil rose in June to a record high as lockdown measures eased down and have remained on the upward trajectory since then.
A similar trend was witnessed in the manufacturing output. Khaqan Najeeb, a former adviser to Pakistan’s finance ministry was of the view that the recovery in large-scale manufacturing persist in the October-to-December quarter as global demand picks up.