ISLAMABAD - The government has missed the large-scale manufacturing (LSM)’s growth target by a small margin of 0.3 percent during previous fiscal year 2016-17.

Pakistan’s large-scale manufacturing (LSM) has recorded 5.6 percent growth during previous fiscal year 2016-17 as against the target of 5.9 percent, according to Pakistan Bureau of Statistics. The LSM, which constitutes 80 percent share within manufacturing and 10.7 percent in overall GDP, has still recorded handsome growth due to continued improvement in the supply of electricity and gas and expansion in credit to the private sector.

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 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 4.18 percent during the year 2016-17 over a year ago. Similarly, the data provided by the Provincial Bureaus of Statistics for 65 items showed growth of 1.22 percent over the same period. The output of 11 items whose data is provided by the Oil Companies Advisory Committee had increased by 0.21 percent during the period under review.

The main drivers of the LSM sector's growth during the period under review were; paper and board that recorded growth of 7.18 percent iron and steel with growth rate of 20.48 percent, non-metallic mineral products with growth of 4.44 percent, pharmaceutical 9.19 percent, electronics 17.02 percent, automobiles 11.22 percent and fertilisers recorded growth of 1.66 percent.

The sectors, whose output declined, included wood production that plunged by 93.74 percent, leather products by 17.02 percent and chemicals 2.11 percent. The automobile sector witnessed growth due to 36.11 percent increase in truck production, 54.59 percent increase in tractors production, 4.49 percent increase in the production of buses and 20.74 percent increase in the production of motorcycles. However, the production of light commercial vehicles (LCVs) dipped by 32.29 percent and jeeps and cars production enhanced by 5.39 percent.

In the case of electrical appliances, production of refrigerators jumped by 22.67 percent, deep freezers’ production upped by 24.13 percent, that of electric-fans by 23.45 percent, production of storage batteries went up by 4.68 percent and electric meters production enhanced by 41.65 percent. However, the production of electric bulb declined by 2.39 percent, switchgears by 8.25 percent and production of electric transformers went down by 12.08 percent and TV set production down by 3.26 percent during the period under review. Meanwhile, manufacturing of cigarettes went down by 35.84 percent during the fiscal year 2016-17.