The Production Value Census of Manufacturing Industries (CMI) 2015-16 shows the value of production/total output at producer prices Rs. 11,181 billion, depicting an increase of 244.76 percent over Rs. 3,243 billion in CMI 2005-06, said the Pakistan Bureau of Statistics (PBS) on Thursday.
In its report titled “CMI census of manufacturing industries (2015-2016)”, PBS stated that the value of production (inclusive of sales tax) minus industrial cost gives Census Value Added (CVA) at market prices, which was Rs. 4,367 billion in 2015-16, as compared to Rs. 1,350 billion in 2005-06 showing an increase of 223.47 percent.
The CMI census is conducted under the provision of Section 39 of the General Statistics (Re-Organization) Act 2011. The first CMI was conducted in 1954 and the last one was completed for the year 2005-06. The census of Large-Scale Manufacturing Industries is conducted after every five years with manufacturing establishments classified under (10 to 33 division) Pakistan Standard Industrial Classification (PSIC-2010) based on UN-ISIC.
CMI provides the measure of manufacturing industry outputs, inputs, and operating status, and is the primary source for updating the Business Register. However, currently, it is linked with rebasing of National Accounts after 10 years. The last CMI of the series was conducted for the year 2005-06. Previous censuses were conducted on the frame of Labour and Industries departments which had low coverage due to incomplete frames and lack of resources.
According to the report, the total value of production of medium and large manufacturing industries stood at Rs. 11,181 billion during the year 2015-16. “This shows an increase of 244.7% over the CMI 2005-06, growing annually by around 13.2%. The textile sector has the highest value of production,” adds the report.
The report noted that the total census value added at producer’s prices during 2015-16 was Rs. 3,722 billion as compared to Rs. 1,238 billion in 2005-06 CMI. It revealed that the textile sector and food products were the major contributors. It witnessed that the contribution to GDP at market prices during 2015-16 amounted to Rs. 3,738 billion as compared to Rs. 1,130 billion in 2005-06. “This indicates an increase of 230.7% amounting to Rs. 2608 billion,” mentioned the PBS data.
The addition of non-industrial receipts less non-industrial payments into Census Value Added results in value-added as measured by National Accounts and termed as a contribution to GDP (also termed as Gross Value Added). CMI 2015-16 witnessed an increase of 203.8 percent Contribution to GDP at producers’ prices (exclusive of sales tax) at Rs. 3,095 billion as compared to the CMI 2005-06 with Rs. 1,018 billion.
Contribution to GDP at basic prices is obtained by deducting import/excise duties and other taxes net of subsidies on products from contribution to GDP at producers’ prices. CMI 2015-16 depicts an increase of 211.05 percent in Contribution to GDP at basic prices at Rs. 2,946 billion as compared to previous Census 2005-06 at Rs. 947 billion.
Contribution to GDP at basic prices during 2015-16 amounted to Rs. 2,946 billion as compared to Rs. 947 billion in 2005-06 indicating an annual increase of 12.0%. The textile sector contributes 20.0% to GDP at basic prices, the highest share among all major industries.
Moreover, according to the PBS document, the capital stock or value of fixed assets at the end of the fiscal year 2015-16 has been calculated adding the value of fixed assets at the beginning of the fiscal year and investment during the fiscal year 2015-16 (purchases fewer sales of fixed assets plus additions to fixed assets out of own production). It amounted to Rs. 3,916 billion at the end of the fiscal year 2015-16 as compared to Rs. 1,147 billion at the end of the fiscal year 2005-06, showing a 241.33% increase.
It is worth mentioning here that an important objective of the manufacturing censuses is to inform about structural changes within the manufacturing sector. These changes can best be measured by weights of selected industries of Large-Scale Manufacturing Industries. Weights have been developed activity-wise according to PSIC -2010. Major changes have been observed in the weights of the following activities. The total number of establishments as per the CMI 2015-16 frame is 42,578 and the total employed persons in these establishments are 2,340,966.
The total contribution to GDP at basic prices stands at Rs. 2,946 billion. A total of 23,712 establishments were covered in CMI 2015-16 while 18,866 establishments (Raising frame see table 9-A) either did not respond or could not qualify to be included in CMI 2015-16 due to low data quality.
The raising frame includes 14,425 units in Punjab, 3,782 in Sindh, 473 units in KP, 123 in Balochistan, and 63 units in Islamabad. The raising methodology is based on employment, GVA per employee at 5 digit level of activity under PSIC2010. The overall employment of 2,340,966 was observed in the frame comprising 42,578 industrial units. Ratios of GDP per employee were computed for 23,712 reported establishments in CMI 2015-2016 at five-digit level activity under each province. These ratios at the five-digit level were used to raise the defaulting non-response units in CMI 2015-16 in order to work out their contribution to GDP at basic prices at each province.
After summing up the result of each province, the large-scale manufacturing sector contribution to GDP (BP) stands at Rs. 2,946 billion during 2015-16.
In the census of Large-Scale Manufacturing Industries (CMI-2015-16), the total frame of LSMI stands at 42,578. PBS got a quality response of 23,712 establishments during the conduct of CMI while the remaining 11,473 establishments consist of non-responded, poor quality response and 7,393 bricks establishments in Punjab, were imputed for raising to complete frame.
The PBS report covers the period from July 2015 to June 2016. Planning and execution of the Census Pakistan Bureau of Statistics (PBS) is the exercising authority of Census of Manufacturing Industries (CMI) 2015-16, throughout the country, under Section 39 of the General Statistics Reorganization Act, 2011 and mandated for planning the census, preparation and printing of questionnaire, preparation of tabulation plan, editing, coding and processing of CMI questionnaires and publication of CMI report.
