ISLAMABAD - Large-scale manufacturing (LSM) recorded growth of 3.24 percent during five months (July-November) of the ongoing fiscal year on an annual basis.

In November 2016, the LSM grew 4.75 percent over the corresponding month of the last year, according to figures issued by the Pakistan Bureau of Statistics (PBS). For the fiscal year 2016-17, the government had targeted LSM growth at 5.9 percent. However, LSM grew by only 3.24 percent during July-November period, far less than the target.

"The large scale manufacturing (LSM), recorded a slowdown from the last year, mainly due to lower production of POL, cigarettes, caustic soda and jute products," stated State Bank of Pakistan in its first quarterly report. It further stated that encouragingly, a number of other industries have shown a sustained growth, like automobile, fertiliser, pharmaceuticals and construction related industries. Growth outcome for FY17 would depend on how the LSM responds going forward to better availability of energy; recent cut in gas tariffs for industries; low cost of borrowing; and ongoing infrastructure projects.

The PBS computes the quantum index numbers of LSM on the basis of latest production data of 112 items received from various sources, including the OCAC, Ministry of Industries and Production and provincial bureau of statistics.

LSM data provided by the Ministry of Industries and Production for 36 items showed growth of 2.35 percent during the quarter under review. Similarly, data provided by the provincial bureaus of statistics for 65 items showed growth of 0.91 percent over the same period.

However, the output of the 11 items whose data is provided by the Oil Companies Advisory Committee fell 0.13 percent during July-November period.

The main drivers of the LSM sector's growth in July-Nov 2016-17 are as: paper and board recorded growth of 3.76 percent, iron and steel 14.53pc, non-metallic mineral products 10.48pc, pharmaceutical 7.64pc, rubber products 0.47pc, electronics 14.52pc, automobiles 5.57pc and fertilisers recorded 4.37pc growth.

 

The sectors, which witnessed negative growths, included wood production that plunged by 97.08 percent and engineering sector that dropped 5.86 percent. Similarly, chemicals industries registered negative growth of 3.6 percent, Coke & Petroleum Products Coke & Petroleum Products 1.68 percent and leather products recorded negative growth of 17.85 percent during first five months of the ongoing financial year.

In the automobile sector, growth is mainly generated from truck production that increased 59.54 percent. However, the production of light commercial vehicles (LCVs) dipped 33.02 percent, tractors 1.08 percent, and jeeps and cars 3.39 percent.

In automobile sector, trucks production went up by 66.37 percent, buses 32.47 percent, motorcycles 17.97 percent and production of tractors up by 37.86 percent. However, production of LCVs (light commercial vehicles) increased by 41.96 percent and jeeps and cars by 2.24 percent during July-November 2016.

In electronics products, production of refrigerators increased by 21.86 percent, deep freezers 50.25 percent, electric-bulbs by 32.82 percent, storage batteries 11.19 percent, and electric meters production enhanced by 9.19 percent.

However, the production of air conditioners declined by 1.41 percent, switchgears by 15.15 percent and production of electric transformers went down by 1.52 percent during the period under review. Meanwhile, production of cigarettes went down by 26.27 percent, jute goods 44.17 percent, hessian 29.63 percent and phosphorus fertilisers 0.17 percent.