Large-scale manufacturing sector grows by 8.2% in January

• LSM maintains growth momentum in the wake of significant improvement in demand from world economies.
• PBS data shows LSM picks up by 4.2% over the previous month.
• During the period, products, whose manufacturing gained momentum included food, tobacco, textile, automobiles, etc.

ISLAMABAD: Large industries have maintained growth momentum in the wake of significant improvement in demand from world economies, supported by special incentives and moderate borrowing rates, The News reported.

According to the Pakistan Bureau of Statistics (PBS), the large-scale manufacturing sector’s (LSM) output grew 8.2% in January.

Data showed that LSM picked up by 4.2% over the previous month, showing a healthy performance almost in all categories. The figures are calculated based on the fiscal year 2015-16.

Growth came on the back of the increasing demand from importing economies and some local support to the industrial sector in the form of subsidised energy, easy raw material imports, and comparatively low-cost borrowing, which helped boost manufacturing activities.

The LSM accounts for 80% of the manufacturing sector. Moreover, industrial production jumped 7.6% in the seven months (July-January) of the fiscal year 2021-22 compared to the same period of the last fiscal.

During the period under review, the products, whose manufacturing gained momentum included food, tobacco, textile, wearing apparel, chemicals, iron and steel products, automobiles, and furniture, while manufacturing of fertiliser, pharmaceuticals, rubber products, and electrical equipment decreased over the same period last year.

The national agency further reported that the LSM data is based on the fiscal year 2005-06. According to this calculation, LSM growth arrives at 6.3% in January 2022 over the same month of last fiscal year and 7.9% over the previous month.

Cumulatively, average LSM growth came at 3.9% during July-January 2021-22 over the same period last fiscal year. Oil Companies Advisory Council, logging outputs of 11 oil and petroleum products, reported a 0.5% year-on-year growth in outputs in July-January FY22.

In January this year, oil sector production, however, declined 1% over the same month of last year and increased 10.7% compared to the previous month.

Ministry of Industries, measuring output trend of 36 items, recorded a 6.9% growth in production during these seven months.

Meanwhile, in January 2022, the ministry reported a growth increase of 8.5% over the same month and 7.8% over December 2021.

During July-Jan FY22, the food sector grew 3.4%, beverages 2.5%, tobacco 21.9%, textiles 2.9%, wearing apparels 18.3%, leather products 4.5%, wood products 172.2%, paper and board 8.2%, coke and petroleum products 0.5%, chemical products 15.5%, iron and steel products 17.5%, machinery and equipment 20.6%, automobiles 63.5%, furniture 553% and other manufacturing (football) increased 22.2% over the same period of last year.

However, production of fertiliser declined 0.5%, fabricated metal 5.5%, and computer, electronics, and optical products 1.1%. 

Besides, pharmaceuticals output also shrank 3.5%, rubber products 25.5%, and electronics production slipped 1.2% during the period.