ISLAMABAD - Large-scale manufacturing (LSM) posted growth of 4.14 percent in April on annual basis.

The LSM, which constitutes 80 percent share within manufacturing and 10.7pc in overall GDP, recorded growth of 5.76 percent during ten months (July to April) of the current fiscal year over a year ago. The LSM growth rebounded to 4.14 percent in April after slowing down to 1.81 per cent year-on-year in March, according to the data of Pakistan Bureau of Statistics (PBS).

Industrial sector is expected to grow by 5.8 percent during current fiscal year, primarily because of vibrant construction activity and notable improvement in large-scale manufacturing. The government in Economic Survey 2017-18 had projected that LSM sector would record growth of 6.13 percent as compared to target of 6.3 percent. The LSM growth of 6.13 percent would be highest in last 11 years. Ample liquidity in the banking system, a highly investment friendly interest rate environment, low inflation, strong domestic demand for consumer durables is responsible for continued growth in this sector, according to the Economic Survey.

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 3.81 percent during July-July period 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 1.2 percent over the same period. The output of 11 items, whose data is provided by the Oil Companies Advisory Committee, increased by 0.76 percent during the period under review.

As far as the main drivers of the LSM sector's growth during the period under review are concerned, electronics sector recorded growth of 40.45 percent followed by iron and steel that recorded 22.88 percent growth. Similarly, automobile sector grew by 19.68 percent and coke and petroleum production increased by 12.98 percent during July-April period of the current financial year over a year ago.

Meanwhile, textile, food, beverages and tobacco, pharmaceuticals, paper and board and rubber products also registered growth during period under review.

On the other hand, fertilizer industry recorded negative growth of 7.95 percent, leather products 9.72 percent, wood products 34.32 percent and chemicals recorded negative growth of 0.44 percent during July-April period of the 2017-18.

In the automobile sector, the production of tractors went up by 36.37 percent year-on-year during July to April, jeeps and cars 22.27pc, light commercial vehicles 22.17pc, trucks 24.7pc and motorcycles 16.4pc. However, the manufacturing of buses dropped 32.51pc during the months under review. The negative growth in the chemical sector was mainly driven by paints and varnishes-small, which recorded an increase of 2.8pc whereas caustic soda went up by 22.23pc.

In non-metallic mineral products, cement posted a growth of 12.53 percent. In the food, beverages and tobacco segment, an increase of 9.32pc was recorded in cooking oil production. Other items that witnessed a positive growth were tea blended, higher by 18.59pc and wheat & grain milling 0.79pc. However, the production of sugar dipped 7.25pc during the month under review.