LSM recorded growth of 7.65pc in September
ISLAMABAD – The growth of large-scale manufacturing (LSM) industries was recorded at 4.81 percent in first quarter (July to September) of the current fiscal year showing that economic activities had revived in the country after the end of first wave of coronavirus.
The LSM, which constitutes 80 percent of manufacturing and 10.7 percent of the overall GDP, had recorded growth of 7.65 percent during September 2020. The LSM sector had contracted more than 10 percent in the previous fiscal year.
According to the PBS, production data of 11 items from Oil Companies Advisory Committee had registered a negative growth of 0.17 percent in July to September period of the year 2020-21. Similarly, the LSM data, provided by the Ministry of Industries and Production for 36 items, had also shown growth of 2.98 percent during the period under review. Meanwhile, the data provided by the provincial Bureaus of Statistics for 65 items had recorded growth of 1.66 percent over the same period.
The growth in LSM is mainly the outcome of increase in production of non metallic and minerals products that went up by 22.17 percent and pharmaceutical by 13.41 percent. Similarly, production of food, beverages and tobacco had enhanced by 12.99 percent. Meanwhile, production of paper and board had increased by 10.35 percent, followed by chemicals, whose production declined by 9.67 percent. The data showed that production of rubber products increased by 8.24 percent.
Meanwhile, according to the PBS data, wood products had recorded negative growth of 69.72 percent, leather products 44.7 percent; engineering products 37.15 percent and electronics had also recorded growth of 20.75 percent during the period under review. Production of iron and steel had gone down by 8.06 percent and automobiles 5.74 percent.
In auto sector, trucks production went down by 5.88 percent, buses 46 percent, trucks 20.38 percent, jeeps and cars 21.14 percent and LCVs 32.51 percent during the period under review.
In annual plan, the government has projected that industrial sector would grow by 0.1 percent during current fiscal year 2020-21. Manufacturing sector is targeted to contract by 0.7 percent based upon LSM contraction of 2.5 percent, small scale & household manufacturing growth of 6 percent. Moreover, construction and electricity generation & gas distribution are targeted to grow by 1.4 percent and 3.5 percent, respectively. Mining and quarrying sector is projected to grow by 0.5 percent. Industry is expected to pick up pace in 2020- 21 with the implementation of envisaged export promotion and industrial development measures. The private sector investment in industrial sector is expected to rise in 2020-21. Private sector will be encouraged to take lead in spurring economic activity while public sector provides the necessary policy and regulatory support.