47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Growth and Stabilizationmanufacturing sector was 3.56 percent comparedto the growth of 3.06 percent last year.Manufacturing has three main sub-components;namely the Large-Scale Manufacturing (LSM),Small Scale Manufacturing and Slaughtering.Small scale manufacturing maintained its growthof last year at 7.51 percent and slaughtering growthis estimated at 4.46 percent against 4.38 percentlast year. Large Scale Manufacturing (LSM) hasalso witnessed a slight improvement. It has showna growth of 1.78 percent against the growth of 1.15percent last year. The major LSM industries whichregistered notable growth include; refrigerators7.56 percent, sugar 27.09 percent, beverages 10.60percent, liquid/syrup 15.93 percent, injection 6.53percent, soaps and detergents 8.15 percent, buses25.0 percent, electric bulbs 15.02 percent, electrictransformers 27.72 percent etc. On the whole 38major industries group recorded positive growth.The industries which reported negative growthinclude; cooking oil -1.61 percent, motor tyres -25.73 percent, T.V. sets -22.19 percent anddeepfreezers -49.47 percent etc.Construction Sector: The construction sector hasshown 6.46 percent growth as compared tonegative growth of -7.09 percent in last year. Theincrease in growth is due to rapid execution ofwork on the rehabilitation of the flood affectedareas, increased investment in small scaleconstruction and rapid implementation of PSDPschemes which are near completion.Mining and Quarrying: Extraction of mineralsand ores through efficient mining and quarryingprovides convenient and economical access to rawmaterials and a competitive edge to the country.The mining and quarrying sector recorded positivegrowth of 4.38 percent during the year 2011-12against the negative growth of -1.28 percent lastyear. The contribution of this sector in GDP hasexpanded remarkably and now accounts for 9.45percent of the industrial value addition. The outputof chromite, bauxite, gypsum, chalk and fluorideincreased by 591.54 percent, 82.15 percent, 24.43percent, 82.18 percent and 111.28 percentrespectively. This growth was also made possiblein some part due to the increase in natural gasproduction. The extraction of bentonite, however,registered substantial decline of -47.82 percent.Much of the country’s mining reserves exist inremote areas. Infrastructure improvements arenecessary to sustain and achieve higher growthrates in future. Improvement in the securitysituation in the country would also lead to greaterproduction.Services Sector:The importance of the services sector has beenrecognized all over the world. This sector hasemerged as the main driver of economic growth.The services sector also plays a vital role insustaining economic activities in Pakistan. Theeconomy has gone through a major transformationin its economic structure. The share of the servicessector has increased to 53.5 percent in 2011-12. Indeveloped countries the share of services sector inGDP is around 75 percent. This share is 65 percentin Singapore, 52 percent in India and 42 percent inIndonesia.The services sector consists of the following subsectors:Transport, Storage and Communication;Wholesale and Retail Trade; Finance andInsurance; Ownership of Dwellings; PublicAdministration and Defense; and Social Services.The Services sector has registered a growth rate of4.02 percent in 2011-12. This performance isdominated by Finance and Insurance at 6.53percent, Social and Community Services 6.77percent and Wholesale and Retail Trade 3.58percent. The contribution of transport, storage andcommunication is estimated at 1.25 percent. Therecovery in agriculture and industry have resulted apositive impact on the performance of the wholesale and retail trade. Our services sector has a greatpotential to grow at a rapid pace. In order todevelop the services sector, Pakistan hasrecognized the needs to liberalize operating rightsand has separated regulators from operators.Finance and Insurance Sector: The finance andinsurance sector comprises the State Bank ofPakistan; all scheduled banks (domestic andforeign), Development Financial Institutions(DFIs), all insurance (life and general) companies,Modaraba/Leasing companies, Money Changersand stock exchange brokers. The financial subsectorconsists of all resident corporationsprincipally engaged in financial intermediations or7