ISLAMABAD: The large-scale manufacturing (LSM) expanded by 6.3 per cent year-on-year in May. It recorded a record single-month growth of 9.7pc in April.

During the first 11 months (July-May) of 2016-17, the LSM grew by 5.7pc, the Pakistan Bureau of Statistics (PBS) data showed on Wednesday.

LSM constitutes 80pc share within manufacturing and 10.7pc in overall GDP. Contrary to this, small-scale manufacturing accounts for 1.8pc in GDP and 13.7pc within manufacturing.

The production data of 36 items received from the Ministry of Industries and Production and that of 65 items received from the provincial bureaus of statistics contributed to LSM growth by 4.01pc and 0.99pc, respectively.

However, the production data of 11 items received from the Oil Companies Advisory Committee contributed slightly to LSM growth by 1.29pc in May.

The official industry-specific data showed that in May, the paper and board products recorded the highest growth of 25pc, followed by coke and petroleum products 22.58pc, automobiles 20.15pc, fertilisers 18.47pc, iron and steel products 17.69pc, wood products 12pc, pharmaceuticals 8.62pc, food, beverages and tobacco 1.46pc, textile 0.71pc and electronics 0.67pc.

Other sectors that showed a decline included leather products 5.36pc, engineering products 3.57pc, rubber products 1.84pc, chemicals 1.2pc, non-metallic mineral products 0.58pc.

According to the finance ministry report, the LSM sector also benefitted from the continued improvement in the supply of electricity and gas coupled with the expansion in credit to the private sector. The sector-specific data showed that growth in the iron and steel sector mainly came from rising production of billets/ingots (up 9.6pc) and hot and cold rolled sheets, strips and coil (24pc).

Robust construction activities also led to an increase in demand for steel and allied products. The improved energy supply and recovery in global prices provided room to local players to increase their prices which ultimately helped them to boost their capacity utilisation.

The cement sector, however, recorded a negative growth of 0.61pc in May 2017 over the last year.

In the food, beverages and tobacco, the highest growth of 127pc was recorded in sugar production in May over the last year on account of a rise in sugarcane crop, rising domestic prices and wide usage of ethanol in power generation by manufacturers.

The other items which recorded positive growth are juices, syrups and squashes whose production rose by 6.73pc, blended tea 21.21pc, cooking oil 11.66pc and vegetable ghee 4.12pc.

In the engineering sector, the production of diesel engines increased by 74.29pc and safety razor blades by 2.69pc.

In the automobile sector, tractors’ output grew 21.35pc, trucks 48.04pc, jeeps and cars 19.35pc, motorcycles 21.85pc and the production of light commercial vehicles up by 12pc in May 2017. However, bus production dropped 36pc.

In the pharmaceutical group, capsules, injections, liquids/syrups and tablets posted growths of 3.34pc, 19.84pc, 2.78pc, and 10.82pc, respectively.

The production of coke and petroleum products went up 22.58pc year-on-year in May, mainly because of increase in the production of motor spirits 33pc, high-speed diesel 23pc, diesel oil 120pc, furnace oil 22.38pc, jute batching oil 20.53pc, kerosene 2.76pc and liquefied petroleum gas 46.57pc.

However, the production of lubricating oil dropped 31.51pc and, and petroleum product 3.07pc.

Published in Dawn, July 20th, 2017