Irfan Ahmed

The overall output of large-scale manufacturing industries (LSMI) decreased by 1.4% to 110.5 points in the first month of the current fiscal year, compared to 112 points in the previous fiscal year, reports WealthPK.

The provisional quantum index numbers of the large-scale manufacturing industries (QIM) have been computed based on the latest production data of 112 items.

On a monthly basis, the LSMI output declined by 16.5% to 110.5 points in July 2022 compared to 132.3 points in June 2022, according to the Pakistan Bureau of Statistics (PBS).

Source: Pakistan Bureau of Statistics

The provisional QIM is computed based on the latest production data received from sources, including the Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production (MIP), and provincial bureaus of statistics (BOS).

The sectors showing growth in July 2022 compared to July 2021 include beverages (0.02%), wearing apparel (4.4%), leather products (0.1%), paper and board (0.5%), iron and steel products (0.6%), furniture (2.2%), and other manufacturing (football) (0.1%).

The main contributors to the overall negative growth of -1.4% are garments (4.4), iron and steel products (0.6), furniture (2.2), chemical products (0.6), cigarettes (-1.7), cement (-2.8) and fertilizers (-0.7).

Petroleum products witnessed a decline of 5.2% as their output went down from 98.2 million liters in July 2021 to 93 million liters in July 2022.

Cement witnessed 41.9% negative growth in July 2022 and remained at 2.145 million tonnes compared to 3.689 million tonnes in the same month of 2021.

The sectors showing a decline during July 2022 compared to July 2021 include food (1.2%), tobacco (1.7%), textile (0.5%), coke and petroleum products (0.4%), chemical products (0.1%), chemicals (0.6%), fertilizers (0.7%), pharmaceuticals (2.2%), non-metallic mineral products (2.4%), fabricated metal (0.1%), electrical equipment (0.1%), machinery and equipment (0.3%), automobiles (0.3%) and other transport equipment (0.2%).

According to the PBS data, the number of refrigerators produced was also down by 39% from 101,879 units in July 2022 to 101,879 units in July 2021.

The production of sewing machines witnessed a 77.3% decline in July 2022 and the quantity remained at 394 units when compared to 1,734 units in July 2021.

In addition, in the first month of fiscal year 2022-23, the number of jeeps and cars witnessed a decrease of 7.3% to 17,127 units from 18,477 units in July 2021.

The growth of the manufacturing industry is a key indicator of a nation's economic power. By creating jobs, industries contribute to the eradication of poverty and unemployment.

Credit: Independent News Pakistan-WealthPk