Govt admits contraction in industrial, agri sectors

The government on Monday conceded contraction in two of the three major real economic sectors — agriculture and industry — signalling slower than targeted economic growth but said Pakistan was “well-positioned for continued growth momentum in the current year on the back of IMF supported policy reforms, monetary easing and fiscal consolidation”. In its half-yearly “State of Economy Report”, the Ministry of Finance (MoF) attributed the slower growth in agriculture due to the high base-effect in the crop sector of the last fiscal year and the decline in the crop production of cotton, rice, sugarcane, and maize. “The growth in important crops contracted by 11.19 per cent first quarter of the year due to the high base-effect in the crop sector of the last fiscal year and the decline in the crop production of cotton (29.6pc), rice (1.2pc), sugarcane (2.2pc) and maize (15.6pc)”, said the MoF, adding that although important crops comprised wheat, cotton, rice, maize, and sugarcane, however, in first quarter there was no impact from wheat as it was neither sown nor harvested during this quarter.