ISLAMABAD -  Pakistan’s large scale manufacturing (LSM) sector has recorded growth of 3.71 percent in the first month (July) of the ongoing financial year 2013-14 against the corresponding period of the previous year, revealed the figures of Pakistan Bureau of Statistics on Friday.

According to latest figures released by Pakistan Bureau of Statistics (PBS), the Quantum Index Number (QIM) of the Large Scale Manufacturing (LSM) industries stood at 110.44 points during July 2013 period as compared to 106.49 points of the corresponding period of its preceding year (July 2012) showing an increase of 3.71 percent in one year.

The Quantum Index Numbers (QIN) of Large Scale Manufacturing Industries has been computed on production data received from the Oil Companies Advisory Committee (comprising 11 items), Ministry of Industries and Production (36 items) and the Provincial Bureaus of Statistics (65 items). The PBS figures revealed that OCAC registered growth of 1.36 percent, Ministry of Industries negative growth of 0.47 percent and Provincial BOS recorded growth of 2.36 percent in July 2013 against July 2012.

According to the Annual Plan 2013-2014, the manufacturing sector is expected to grow by 4.5 percent during the current financial year based on the growth rate of large-scale manufacturing sector 4 percent, small and household manufacturing 8.2 percent and slaughtering 3.6 percent. The likely growth of the large-scale manufacturing is based on the assumption of relatively better energy supply and some rise in demand as well. Growth of construction sector would help in allied industries such as cement, steel, glass, paints and varnishes.

However, the trade analysts are of the view that manufacturing sector would struggle to achieve the annual growth target keeping in view the poor law and order situation, political uncertainty, acute energy crisis and less domestic demand. These issues have kept the manufacturing sector under stress for the last several years and are also responsible for high cost of doing business. This scenario is compelling investors and businessmen to freeze their businesses expansion or wrap them up.

The official data revealed that following sectors registered positive growth in July 2013 period against the same period of last year: food, textile 2.8 percent, beverages and tobacco 16.09 percent, coke and petroleum products 21.96 percent, paper and board 5.53 percent, rubber products 7.21 percent and pharmaceutical 4.54 percent and fertilizer 19.74 percent during July 2013 against its preceding year.

According to the PBS data, following sectors registered negative growth in July 2013 against the same period of last year: non metallic mineral products 4.56 percent, electronics, 11.92 percent, wood products, 17.55 percent, engineering products 14.74 percent, automobiles 15.87 percent, chemicals 1.99 percent, iron and steel products 10.59 percent and leather products 8.83 percent during July 2013 against its preceding year.