ISLAMABAD: The large-scale manufacturing (LSM) posted a growth of 2.76 per cent year-on-year in May, the Pakistan Bureau of Statistics revealed on Thursday.

The meagre increase in the big industry’s production is sending fears that the country may miss the economic growth target projected for the outgoing fiscal year.

From July-May, LSM rose over 6pc year-on-year — so far below the FY18 target of 6.3pc. In 2016-17, it went higher by 5.6pc.

The lower growth in production in May was led by pharmaceuticals, down 7.24pc, electronics 2.13pc, chemicals 3.75pc, fertilisers 27.52pc, leather products 19.28pc and wood products 56.95pc, respectively.

LSM constitutes 80pc of manufacturing and 10.7pc of the overall GDP. In comparison, small-scale manufacturing accounts for just 1.8pc in GDP and 13.7pc in manufacturing.

Production data of 36 items received from the Ministry of Industries and Production showed negative growth of 2pc in May. 65 items reported by the provincial bureaus of statistics, on the other hand, declined by 0.46pc.

Figures of 11 items received from the Oil Companies Advisory Committee positively contributed 1.22pc to LSM growth.

Industry-specific data show that engineering products recorded the highest increase of 50.88pc, followed by petroleum products 18.6pc, automobiles 15.32pc, food, beverages and tobacco products 16.28pc, iron and steel products 13.47pc, rubber products 7.77pc, non-metallic mineral products 7.39pc, paper and board 4.45pc, and textile 0.09pc.

In the automobile sector, the production of tractors went up 19.56pc in May, jeeps and cars 0.74pc, and motorcycles 14.57pc.

Light commercial vehicles shrank by 12.96pc, followed by 7.02pc in trucks, and 19.51pc in buses production during the month under review.

The negative growth in the chemical sector was mainly driven by paints and varnishes-small, which recorded a drop of 4.11pc, whereas caustic soda went up by 20.17pc.

In pharmaceuticals, syrups and tablets went down by 14.85pc and 5.09pc, respectively. However, the production of capsules and injections rose by 20.68pc and 16.25pc.

In non-metallic mineral products, cement posted a growth of 7.5pc.

In the food, beverages and tobacco segment, the maximum increase of 23.33pc was recorded in cooking oil production. Other items that witnessed a positive growth were vegetable ghee, higher by 2.89pc and blended tea 0.98pc.

Published in Dawn, July 21st, 2018