ISLAMABAD - The large-scale manufacturing (LSM) sector registered handsome growth of 6.76 per cent during first half (July-December) of the current financial year 2013-2014 over a year ago mainly due to improved power supply to the industries.
The latest figures of Pakistan Bureau of Statistics (PBS) showed that the LSM sector registered impressive growth of 24.31 per cent in the month of December over November.
The main reason behind impressive growth in LSM sector is improved power supply to the industries. The International Monetary Fund (IMF) has also shown satisfaction over the economic performance, especially LSM sector. “Pakistan’s economy is showing signs of improved economic activity. Services and manufacturing are driving better-than-expected GDP growth, as reforms in the electricity sector seem to be bearing fruit with electricity shortages and unscheduled load-shedding declining. Led by large scale manufacturing and service sectors, growth is picking up and is now expected to reach about 3.1 percent for FY2013/14 as a whole, compared to the earlier estimate of 2.8 percent”, said IMF’s latest report regarding Pakistan economy.
According to the PBS figures, growth in LSM was mainly driven by 12 categories of items in the July-December period of 2013-14 over the corresponding period of last year. Major contribution towards positive growth was from textile 1.73 per cent, food and beverages 18.17 per cent, petroleum products 8.31 per cent, paper and board 17.5 per cent, pharmaceutical 0.55 per cent, fertilisers 28.75 per cent, electronics 12.2 per cent, iron and steel products 2.32 per cent, leather products 9.61 per cent, chemicals 5.27 per cent, non-metallic mineral products 1.04 per cent and rubber products 5.96 per cent.
However, some sectors like wood products witnessed a decline of 15.45 per cent, engineering products 24.84 per cent and automobiles 2.29 per cent during the months under review.
In electronic and electrical goods, production of refrigerators recorded a growth of 10.06 per cent; deep-freezers was up by 114.66 per cent; air-conditioners 116.45 per cent; electric bulbs 20.54 per cent; electric motors 37.21 per cent; switch gears 156.77 per cent and TV sets 17.88 per cent during the period under review over the same months last year.
However, electric tubes production witnessed a negative growth of 59.87 per cent, electric fans 3.12 per cent, electric meters 31.57 per cent, transformers 55.41 per cent; generating sets 100 per cent and bicycles 14.81 per cent during July-December 2013 over the same months last year.
The growth was witnessed in case of food, beverages and tobacco. The sector has adjusted weightage of 12.37pc in LSM basket.
Meanwhile, in automobile sector, tractors production was down by 34.55 per cent, jeeps and motorcycles 1.54 per cent during the period under review over the last year.
The production of trucks however was up by 25.18 per cent; buses 2.07 per cent, jeeps and cars 2.25 per cent and LCVs 29.10 percent during the July-December period in 2013 over the last year.