LSM recorded growth of 9.13 per cent in January
ISLAMABAD – Pakistan’s large scale manufacturing (LSM) sector is continuously showing handsome growth during ongoing financial year, indicating the revival of industrialisation in the country.
The LSM, which constitutes 80 per cent of manufacturing and 10.7 per cent of the overall GDP, has recorded growth of 9.13 per cent in the month of January over the corresponding period of the previous year. Meanwhile, the LSM has shown growth of 7.85 per cent in first seven months (July to January) of the current fiscal year, according to the latest data of Pakistan Bureau of Statistics (PBS) released on Tuesday.
The LSM sector has rebounded from the start of current financial year after suffering due to Covid-19 last year. The LSM is showing massive growth on the back of non metallic mineral products, automobiles, food, beverages & tobacco, chemicals and pharmaceuticals. Low-interest rates and reduction in duties on raw materials are expected to further spur economic activities in the current fiscal year. Massive increase in LSM growth would help in increasing overall GDP growth of the country, which had contracted in last fiscal year mainly due to the spread of the Covid-19.
The government is claiming that economic activities are reviving following the continuous growth in the LSM sector during the year 2020-21. Federal Minister for Industries and Production Hammad Azhar said that large scale manufacturing has posted a growth of 9.1% in January. “The sustained and robust growth in industry is expected to lift economic growth beyond earlier forecasts Inshaallah,” he said on Twitter.
The PBS data showed that production data of 11 items from Oil Companies Advisory Committee had registered a negative growth of 0.26 per cent in July to January period of the year 2020-21. Similarly, the data provided by the Ministry of Industries and Production for 36 items, had also shown growth of 6.48 per cent during the period under review. Meanwhile, the data provided by the provincial Bureaus of Statistics for 65 items had recorded growth of 1.11 per cent over the same period.
Large scale manufacturing has shown growth of 7.85 per cent in first seven months of current FY
The growth in LSM is mainly the outcome of increase in production of non metallic and minerals products that went up by 22.31 per cent and food, beverages & tobacco by 19.13 per cent. Similarly, production of automobiles had enhanced by 13.02 per cent. Meanwhile, production of chemicals had increased by 9.19 per cent, followed by fertilizers, whose production surged by 6.74 per cent. The data showed that production of textile products increased by 2.65 per cent in July to January period of the year 2020-21.
Meanwhile, according to the PBS data, wood products had recorded negative growth of 56.11 per cent, leather products 41.65 per cent; engineering products 30.52 per cent and electronics had also recorded growth of 25.11 per cent during the period under review. Production of rubber had gone down by 5.02 per cent and iron and steel products 1.06 per cent.
In auto sector, trucks production went down by 16.6 per cent and buses 8.79 per cent. Meanwhile, products of jeeps and cars increased by 8.61 per cent, LCVs 20.21 per cent and motorcycles 15.59 per cent during the period under review.
The production of cement products enhanced by 23.12 per cent during the seven months period on the back of greater demand following the start of construction activities and increase in exports from the country. Sugar production is up by 44.52 per cent. In pharmaceuticals, the output of syrups rose by 22.44 per cent, injections 35.62 per cent and capsules 28.89 per cent. The output of tablets dipped 56.11 per cent and ointments 7.32 per cent, respectively.
On the other hand, vegetable ghee production dipped by 3.37 per cent and cooking oil production slightly went up by 0.17 per cent. The production of tea, wheat and grain milling output grew 2.07 per cent and 74.94 per cent, respectively. The data for July to January showed that output of petroleum products went up by 4.63 per cent. The output of two oil products — petrol and high-speed diesel was up 17.66 per cent and 8.68 per cent, respectively whereas furnace oil production increased by 4.98 per cent during the period under review.