Large Scale Manufacturing Grows by 8.5% in Second Month of FY 2017-18

According to the Pakistan Bureau of Statistics, in the second month of fiscal year 2017-18 Large-scale manufacturing (LSM) saw year-on-year growth of 8.5 percent.

The LSM Growth Rate

LSM reported a year-on-year growth rate of 13% in July. The growth rate underwent an increase of 5.6% in the year 2016-17 and the target set by LSM for the year 2017-18 is 6.3%.

The growth rate was reported to be 11.3% in July-August, on a year over on year basis.

Production Data

The contribution of LSM in manufacturing stands at 80%, while its contribution to GDP is 10.7%. Contributions by small-scale manufacturing, on the other hand, remain at 13.7% within manufacturing and 1.8% in GDP.

A production report received by the Ministry of Industries revealed that the 36 items mentioned in the report contributed to 5.44% growth in LSM. The production data provided by the provincial bureaus of statistics reported 65 items that led to a contribution of 1.3%.

The production data provided by the Oil Companies Advisory Committee (OCAC) represented 11 items contributing to 1.8% of LSM growth.

The Industrial Sector

Data from industries revealed the growth rate contributions made by the following product categories:

• Iron and steel products: 53%
• Automobiles: 19%
• Engineering products: 4.34%
• Wood products: 15.7%
• Coke and petroleum products: 28.8%
• Pharmaceuticals: 10.18%
• Leather products: 8.5%
• Fertilisers: 0.17%
• Non-metallic mineral products: 7.8%
• Food, beverages, and tobacco: 7.5%
• Chemicals: 3.13%
• Rubber products: 1.8%
• Paper and board: 53%
• Textiles: 0.56%

Other Sectors

Mentioned below are the production rates of different products recorded in the month of August:

Items that recorded a negative growth rate:

• A decline of 4.5% was observed in electronics
• Production of LCVs underwent a drop of 10.04%
• Production of Buses underwent a drop of 13%
• Production of paints and varnishes underwent a drop of 1.09%

Items that recorded a positive growth rate:

• Chemical sector, driven by the production of caustic soda underwent an increase of 26.21%
• A growth rate of 49.8% was recorded in sugar
• Productions in the pharmaceutical sector increased by:
  • Capsules: 18.46%
  • Injections: 18.18%
  • Liquids/syrups: 8.6%
  • Tablets: 9.6%
• The automobile sector:
  • Production of tractors increased by 31.2%
  • Production of Motorcycles increased by 19.84%
  • Production of jeeps and cars increased by 16.87%
• Other items that underwent a positive growth rate:
  • Vegetable ghee: 3.08%
  • Cooking oil: 7.02%
  • Blended tea: 3.98%

Via Dawn