LSM expands 26.6pc in March
ISLAMABAD – Large-scale manufacturing (LSM) expanded 26.6 per cent in March 2022 over the same month a year ago on account of surging global demand, easy credits, and to some extent subsidised energy supplies to industry.
According to the PBS data, LSM has recorded growth of 10.4 percent in first nine months (July 2021 to March 2022) period of current fiscal year. The LSM has rebounded after months of a downturn on account of the Covid-19 pandemic, mainly in the automobile, construction, textile, food, chemicals, non-metallic mineral products and pharmaceutical sectors. However, high-interest rates and depreciation of the rupee will increase the cost of raw materials further and economic activities are expected to slightly slow down during the current financial year.
The PBS also reported the LSM data based on the fiscal year 2005-06. According to this calculation, LSM improved 26.9 percent in March 2022 over the same month of last fiscal. Whereas, average LSM growth during July-March FY2022 was recorded at 7 percent over the same period of the last fiscal.
Ministry of industries, measuring output trend of 36 items, recorded a growth of 5.2 per cent in production. Provincial Bureau of Statistics, counting production of 65 products, logged 5.1 percent growth. Oil Companies Advisory Council, logging outputs of 11 oil and petroleum products, has recorded 0.1 percent growth in first eight months of the ongoing financial year.
LSM has recorded growth of 10.4 per cent in first nine months of current fiscal year
According to the PBS data, wood products has increased by 157.5 percent, food 11.7 percent, beverages 0.7 percent, tobacco 16.7 percent, automobiles 54.1 percent, furniture 301.8 percent, machinery and equipment 8.9 percent and iron and steel products 16.5 percent during July-March 2021-22 compared to the same period last year.
The sectors showing decline during July-March 2021-22 compared to the same period of the previous year included pharmaceuticals 0.4 percent, rubber products 20.6 percent, fabricated metal 7.2 percent, transport equipment 10.2 percent and electrical equipment 1.1 percent.
The industrial sector was projected to grow by 6.5 per cent based upon the large-scale manufacturing target of 6 percent. Moreover, another challenge for the manufacturing sector is high cost and low supplies of energy inputs. The construction sector is expected to post healthy growth due to the construction amnesty scheme and concessional credit availability for the housing sector. The LSM in the 1HFY22 has recorded a growth of 7.4pc compared to 1.2pc over the corresponding period of FY21.