LSMI output down by 0.4% to 113.4 points in three months

November 22, 2022

Irfan Ahmed

The overall output of the large-scale manufacturing industry (LSMI) decreased by 0.4% and remained at 113.4 points in July-September 2022-23, compared to 113.8 points in the corresponding period of 2021-22, with the base year 2015-16, according to the Pakistan Bureau of Statistics (PBS).

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 year-on-year (YoY) basis, the industry gained 0.01% and remained at 115.02 points in September 2022 compared to 115.01 points in September 2021.

On a monthly basis, the LSMI output recorded an increase of 0.1% and remained at 115.02 points in September 2022 compared to 114.9 points in August 2022, reported WealthPK.

Source: Pakistan Bureau of Statistics

The provisional QIM is being 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 production in July-September 2022-23 as compared to July-September 2021-22 has increased in wearing apparel, chemicals, iron and steel products, and furniture while it decreased in food, tobacco, textile, coke and petroleum products, pharmaceuticals, rubber products, non-metallic mineral products, fabricated metal, electrical equipment, machinery and equipment, automobiles and other transport equipment. The main contributors to the overall growth of -0.4% are, garments (5.0), petroleum products (-1.4), cement (-1.4), pharmaceuticals (-1.8), iron & steel products (0.2), and automobiles (-1.5).

The sectors showing growth in the first quarter of 2022-23 include beverages (03%), wearing apparel (58.1%), leather products (8.4%), wood products (5.3%), paper and board (23.5%), chemicals (4.1%), chemical products (6.9%), fertilizers (2.2%), iron and steel products (4.9%), and furniture (126.6%). The sectors showing decline in July-September 2022-23 include tobacco (31.2%), coke and petroleum products (18.9%), rubber products (7.1%), food (6.2%), textile (3.3%), non-metallic-mineral products (13%), fabricated metal (18.7%), computer, electronics and optical products (9.6%), electrical equipment (3.5%), machinery and equipment (37%), automobiles (32.8%), other transport equipment (42.4%), and other manufacturing (football) (59.1%). 

In the first quarter of FY23, petroleum products production declined by 18.9%, from 101 million litres in the corresponding period of FY22 to 81.8 million litres. On a month-on-month (MoM) basis, petroleum products registered a 24.4% decline in September 2022. Cement production witnessed a 20.4% negative growth in July-September FY23, and remained at 9.125 million tonnes compared to 11.468 million tonnes in the same period of last year. On a YoY basis, cement sector registered a 1.5% negative growth in September 2022, and remained at 3.955 million tonnes compared to 4.014 million tonnes in the same period of last year.   

The number of refrigerators produced also declined by 39.5% from 452,139 units in July-September 2022 to 273,719 units in July-September 2021. On a YoY basis, refrigerators production witnessed a 42.8% decrease in September 2022 and remained at 81,742 units compared to 143,022 units in September 2021.  On the other hand, sewing machine production witnessed a 76.2% decline from July-September 2022-23, and quantity remained at 1,191 units when compared to 5,013 units in the same period of last year.

 In addition, in Q1 FY23, the number of jeeps and cars witnessed a 34.5% decrease to 40,230 units from 61,396 units in the same period of the last fiscal year. One important measure of a country's economic strength is expansion of its manufacturing sector. Industries support the economy by reducing unemployment and poverty with creation of jobs. It is essential that the manufacturing sector contributes to an economy's growth and job creation.  The industry should place a greater emphasis on enhancing production.

Credit : Independent News Pakistan-WealthPk