LSM sector posts 8.36pc growth in first quarter

ISLAMABAD - Large-scale manufacturing (LSM) sector recorded growth of 8.36 percent in first quarter (July-September) of ongoing fiscal year over a year ago.

The LSM, which constitutes 80 percent share within manufacturing and 10.7pc in overall GDP, recorded handsome growth due to continued improvement in the supply of electricity and gas and expansion in credit to the private sector. According to Pakistan Bureau of Statistics (PBS), the LSM sector registered 2.51 percent growth during the month of September as compared to the same month of last year. Growth during September reduced as compared to the figures of August and July when LSM recorded 8.54 percent and 12.98 percent growths respectively.

The government had projected LSM growth target at 6.3 percent for the ongoing financial year 2017-18. The PBS computes the quantum index numbers of the LSM on the basis of latest production data of 112 items received from various sources, including the Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production and provincial Bureau of Statistics.

The LSM data, provided by the Ministry of Industries and Production for 36 items, showed growth of 6.44 percent during July-September of the year 2017-18 over a year ago. Similarly, the data provided by the Provincial Bureaus of Statistics for 65 items showed growth of 0.99 percent over the same period. The output of 11 items, whose data is provided by the Oil Companies Advisory Committee, increased by 0.93 percent during the period under review.

The main drivers of the LSM sector's growth during the period under review were: iron and steel that recorded 47 percent growth, automobile 29.43pc, non-metallic mineral products 12.15pc, wood products 6.78pc, engineering products 25.97pc and coke & petroleum products that recorded growth of 13.74 percent during July-September period of the current financial year over a year ago. Similarly, textile, food, beverages & tobacco, pharmaceuticals, chemicals, electronics, paper & board and rubber products also registered growth during period under review.

On the other hand, only fertilizer industry recorded negative growth of 5.84 percent during July-September period of the 2017-18.

The automobile sector witnessed growth due to 115.8 percent increase in tractors production, 36.37 percent increase in trucks production, 31.37 percent rise in jeeps and cars production and 24.78 percent surge in motorcycles production, during July-September period of the year 2017-18. However, the production of buses dipped by 20.97 percent.

In the case of electrical appliances, production of deep freezers jumped by 18.64 percent, air-conditioners production went up by 32.02 percent, that of electric-fans by 18.27 percent, production of electric motors went up by 11.38 percent and electric meters production enhanced by 14.97 percent. Similarly, production of switchgears went up by 11.87 percent, and electric transformer sets production enhanced by 32.31 percent during the period under review. However, the production of electric bulbs declined by 12.44 percent, TV sets production down by 3.05pc and storage batteries production reduced by 0.79 percent during first quarter of the current fiscal year.

In non-metallic mineral products, cement grew by 12.45 percent in July-September compared to a year ago.

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