ISLAMABAD - Large-Scale Manufacturing (LSM) sector has recorded 5.89 percent growth during nine months (July to March) of the ongoing fiscal year.

The LSM, which constitutes 80 percent share within manufacturing and 10.7pc in overall GDP, recorded growth of 5.89 percent during nine months (July to March) of the current fiscal year over a year ago. The LSM sector registered 1.81 percent growth during the month of March as compared to the same month of last year.

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 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 are responsible for continued growth in this sector, according to the Economic Survey.

During FY 2018, the performance of the  manufacturing sector remained satisfactory on account of better performance shown in sub sectors especially Large Scale Manufacturing (LSM).

The outlook is promising on the back of continued growth performance of LSM, expansion in credit to private sector, low policy rate, contained inflation along with benefits from the activities related to the China-Pakistan Economic Corridor (CPEC). The Census of Manufacturing Industries (CMI) Survey was done in 2005-06 on which share of LSM is calculated. There is dire need to expedite the process of conducting latest CMI survey in order to capture the more realistic picture through adding more industries in LSM sector.

The Pakistan Bureau of Statistics (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 3.33 percent during July-March 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 1.84 percent over the same period.

The output of 11 items, whose data is provided by the Oil Companies Advisory Committee, had increased by 0.72 percent during the period under review.

The main drivers of the LSM sector's growth during the period under review were: iron and steel that recorded 27.49 percent growth , automobile 18.95pc, non-metallic mineral products 12.14pc, engineering products 5.51pc and coke and petroleum products that recorded growth of 12.31 percent during July-March period of the current financial year over a year ago. Similarly, textile, food, beverages and tobacco, pharmaceuticals, chemicals, electronics, paper and board and rubber products also registered growth during period under review.

On the other hand, fertilizer industry recorded negative growth of 8.3 percent, leather products 9.11 percent, wood products 32.53 percent and chemicals recorded negative growth of 0.37 percent during July-March period of the 2017-18.