ISLAMABAD: Large-scale manufacturing (LSM) recorded a growth of 8.5 per cent year-on-year in the second month of 2017-18, the Pakistan Bureau of Statistics reported on Wednesday.

In July, LSM posted a year-on-year growth of 13pc. The LSM target for 2017-18 is 6.3pc. It grew 5.6pc in 2016-17.

In July-August, LSM posted a growth of 11.3pc on an annual basis.

LSM constitutes a share of 80pc 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.

Production data of 36 items received from the Ministry of Industries showed they contributed 5.44pc to LSM growth in August. The contribution of 65 items, whose production data is provided by provincial bureaus of statistics, remained 1.3pc.

Production data of 11 items received from the Oil Companies Advisory Committee (OCAC) showed they contributed 1.8pc to LSM growth in August.

Industry-specific data shows that iron and steel products recorded a growth of 53pc, coke and petroleum products 28.8pc, automobiles 19pc, wood products 15.7pc, pharmaceuticals 10.18pc, leather products 8.5pc, non-metallic mineral products 7.8pc, food, beverages and tobacco 7.5pc, engineering products 4.34pc, chemicals 3.13pc, rubber products 1.8pc, paper and board 1.53pc, fertilisers 0.17pc and textiles 0.56pc.

Production of iron, steel increased 53pc in August

Electronics showed a decline of 4.5pc during the month under review.

In the automobile sector, the production of tractors in August went up 91.13pc, trucks 31.2pc, motorcycles 19.84pc and jeeps and cars (16.87pc).

The production of light commercial vehicles (LCVs) dropped 10.04pc while that of buses declined 13pc during the month under review.

The increase in the chemical sector was mainly driven by caustic soda, which went up 26.21pc in August.

However, a negative growth of 1.09pc was recorded in paints and varnishes-small during August.

In the pharmaceutical segment, capsules, injections, liquids/syrups and tablets recorded a growth of 18.46pc, 18.18pc, 8.6pc and 9.6pc, respectively.

In non-metallic mineral products, cement grew 8.18pc in August mainly because of vibrant construction activities and a reduction in the benchmark interest rate.

In food, beverages and tobacco, the highest growth of 49.8pc was recorded in sugar production in August on account of a rise in the sugarcane crop, rising domestic prices and wide usage of ethanol in power generation by manufacturers.

Other items that recorded a positive growth are vegetable ghee, up 3.08pc, cooking oil 7.02pc and blended tea 3.98pc.

In the engineering sector, the production of diesel engines increased 300pc while that of safety razor blades rose 1.82pc.

Published in Dawn, October 26th, 2017