ISLAMABAD: Large-scale manufacturing (LSM) expanded by 5.6 per cent in 2016-17, the Pakistan Bureau of Statistics (PBS) reported on Friday.
This is the highest rate of increase recorded in the last four years, which reflects the revival of growth in large industries’ production.
LSM grew 3.13pc in 2015-16, 3.38pc in 2014-15, 5.39pc in 2013-14 and 4.28pc in 2012-13.
On a monthly basis, LSM grew 3.33pc in June, PBS data showed. It registered a record single-month growth of 9.7pc in April.
LSM constitutes 80pc of manufacturing and its share in overall GDP is 10.7pc. Small-scale manufacturing accounts for 1.8pc in GDP and has a share of 13.7pc within manufacturing.
Production data of 36 items received from the Ministry of Industries and Production and that of 65 items from the provincial bureaus of statistics contributed to LSM growth by 4.18pc and 1.22pc, respectively.
Production data of 11 items received from the Oil Companies Advisory Committee contributed to LSM growth by 0.21pc in 2016-17.
According to industry-specific data for 2016-17, iron and steel recorded the highest growth of 20.48pc, followed by electronics 17.02pc, food, beverages and tobacco 11.49pc, automobiles 11.22pc, pharmaceuticals 9.19pc, paper and board products 7.18pc, non-metallic mineral products 4.44pc, engineering products 4pc, coke and petroleum products 2.79pc, fertilisers 1.66pc and textiles 0.81pc.
Sectors that showed a decline included leather products, which went down by 17.02pc, chemicals 2.11pc and wood products 93.74pc.
The LSM sector benefitted from the continued improvement in the supply of electricity and gas coupled with the expansion in credit to the private sector.
Sector-specific data showed growth in the iron and steel sector mainly came from rising production of billets/ingots (up 28.77pc) and hot and cold rolled sheets, strips and coil (13.85pc).
Robust construction activities also led to an increase in demand for steel and allied products. Improved energy supplies and recovery in global prices ultimately helped local players boost their capacity utilisation.
The cement sector recorded growth of 4.48pc in July-June over the last year.
Within food, beverages and tobacco, the highest growth of 37.8pc was recorded in sugar production on account of an increase in the sugarcane crop, rising domestic prices and wide usage of ethanol in power generation by manufacturers.
Other items that recorded positive growth are juices, syrups and squashes whose production rose by 12.06pc, blended tea 8.93pc, cooking oil 3.49pc and vegetable ghee 5.44pc.
In the engineering sector, the production of diesel engines increased by 210.68pc and that of safety razor blades by 9.53pc.
In the automobile sector, tractors’ output grew 55pc, trucks 36.11pc, jeeps and cars 5.39pc, motorcycles 20.74pc and bus production 4.49pc. However, the production of light commercial vehicles dipped by 32.29pc.
In the pharmaceutical group, capsules, injections, liquids/syrups and tablets posted growth of 3.12pc, 21.09pc, 8.26pc and 6.59pc, respectively.
The production of coke and petroleum products went up 3.39pc year-on-year mainly because of an increase in the production of motor spirits, which rose by 13.64pc, high-speed diesel 4.41pc, furnace oil 4.41pc, jute batching oil 47.65pc, jet fuel oil 5.01pc and liquefied petroleum gas 13.60pc.
However, the production of lubricating oil dropped 7.03pc, diesel oil 17.68pc, kerosene 12.35pc and petroleum product 10.55pc.
Published in Dawn, August 19th, 2017