AUTO INDUSTRY AND ECONOMIC DEVELOPMENT

Byline: SHAMSUL GHANI - feedback@pgeconomist.com Pakistan had an average GDP growth of 7.3 per cent during the financial years 2003-04 to 2006-07 when both consumption and investment levels had been on a rise. Likewise, the automobile industry of Pakistan flourished in style. From statistical angle, it still has a great potential to further grow. The components of its growth, when critically studied, give little to sing about. Large Scale Manufacturing saw a negative growth of 7.6 per cent during Jul-Mar 2009, with the economy showing some signs of recovery, compensated by a positive growth of 4.4 per cent during the same months of FY-10. The recovery has been mostly in the personal transport sector n cars and motor cycles. Any signals of any robust improvement in the economy are hardly present in the overall LSM growth pattern.