Large-Scale Manufacturing (LSM) has contracted by 1.19 percent in October from the same month a year ago.
After Covid-19, Pakistan witnessed a performance of Large Scale Manufacturing. During the last fiscal year, the LSM grew at the rate of 14.85 percent and the government was loudly claiming that the slump in the industrial sector had gone. Nearly all the sectors came ahead with impressive performance especially automobile, construction, textile, food, chemicals, non-metallic mineral products, and pharmaceutical sectors grew extremely well.
Read more: Large-scale manufacturing expands 6.66 percent during October
During the first four months of the current financial year, Large Scale Manufacturing increased by 3.5 percent on a year-on-year basis. It squeezed by 1.19 percent in October as compared to the same month, last year as per data, released by the Pakistan Bureau of Statistics on Tuesday. On a moth-on-month basis, the large industrial production increased by 1.86 percent.
According to a report of the State Bank of Pakistan, the performance of seven out of fifteen sub-sectors in the LSM came down in October. It is expected that a high rate of interest and devaluation of rupees will cause the slowing down of economic activities in the country in this fiscal year. Manufacturing of 11 items under the Oil Companies Advisory Committee increased by 14.75 percent year-on-year basis in the month of October.
The production of 36 items under the Ministry of Industries and Production came down by 1.21 percent. The production of 65 items decreased by 4.33 percent. Large Scale Manufacturing is 9.73 percent of Gross Domestic Product and covers 76.1 percent of total industrial production. Small Scale Manufacturing covers 2.12 percent of GDP and comes with a share of 16.6 percent in the total industrial sector.
The data of the Pakistan Bureau of Statistics shows that the performance of the automobile sector has been on the high side in October as compared to the performance in the same month, last year.
The production of the tractors moved up by 23.09 percent, the production of trucks went up 55.49 percent, the manufacturing of buses increased by 25.71 percent, the production of jeeps and cars went up by 45.12 percent and the manufacturing of LCVs increased by 100.98 percent in October.
