The businesses in Pakistan are gaining momentum after the eradication of Covid from the country that contracted the economy for the first time in seven decades.
According to a recent article by Bloomberg, evidence of business momentum can be seen from growing cement-to-fuel sales and demand for home appliances to cars. While Pakistan largely containing the threat of coronavirus. So far 96 percent of the total around 300,000 infected people have recovered.
Chief executive officer at Tangent Capital Advisors Pvt Muzzammil Aslam expects economic expansion at 4%-5% in the year started July, higher than the government’s 2.1% target. Muzzammil Aslam said, “It has surprised everybody. The growth is led by an aggregate demand push.”
Businesses momentum Pakistan Covid Bloomberg also stated that cement sales rose 38 percent to 4.8 million tons in July from the year-ago. The government program to give amnesty to tax evaders, provided they fund construction projects, is expected to fuel activity and demand for cement as work resumes after the lockdown.
Saad Khan, research head at IGI Securities Ltd said, “We expect dispatches to continue their rising run moving forward because of tax measures,” he added, “Substantial decline in interest rates and mandatory targets given for banks to increase housing and construction financing to at least 5% of private sector credit” will also help.”
Pakistan’s July cement sales rose close to last year October’s all-time high. In August, the cement sales eased to 3.5 million tons due to the torrential rains in the country.
Moreover, in June, the fuel sales rose to a record high as people returned to work after the extended lockdown that eased in May.
In the automobile sector, about 10,000 units have been recorded of local car deliveries after four months of lockdown.
Manufacturing output improved for a second consecutive month in June.