LSM contracts 1.2pc in February
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ISLAMABAD: The large-scale manufacturing (LSM) output declined by 1.15 per cent year-on-year in February, the Pakistan Bureau of Statistics (PBS) reported on Saturday.
Similarly, compared to January this year, LSM was down 0.91pc while the index figure during 8MFY20 also fell 3.03pc.
The LSM index returned to the red after witnessing growth of 9.66pc in December 2019, which was led by impressive performance in sugar production rising by 97pc.
Similarly, during July-February FY20, the LSM shrank by 3.03pc from a year ago.
In 2018-19, the big industry had declined 3.64pc versus a target growth of 8.1pc, which for the ongoing fiscal year had been set at 3.1pc.
Sector wise, production of 11 items under the Oil Companies Advisory Committee went down by 13.57pc during 8MFY20, 36 items under the Ministry of Industries and Production by 2.68pc while 65 items reported by the provincial Bureaus of Statistics fell 1.56pc.
LSM constitutes 80pc of the country’s total manufacturing and accounts for nearly 10.7pc of the national output. In comparison, small-scale makes up for just 1.8pc of GDP and 13.7pc of the secondary sector.
According to the data, the auto sector, which has seen massive decline in sales over the last few quarters, witnessed multiple upward price revisions due to currency depreciation, keeping potential buyers at bay.
On a yearly basis, it registered sales decrease in almost all variants excluding buses and motorcycles during February as production of tractors plunged by 27.89pc, trucks 19.58pc, jeeps and cars 43.25pc, and LCVs 52.29pc, respectively. However, production of buses up by 153.85pc and motor cycles 3.27pc during the month under review.
Meanwhile, production of sugar declined by 7.74pc year-on-year in March. The output of cement rebounded and jumped 28.19pc during the month under review.
Pharmaceutical also suffered due to a considerable lag in regulatory adjustments in prices, which in addition to the weakening of rupee added to the distress of the import-dependent sector.
As a result, output of syrups was lower by 1.78pc, capsules 25.02pc, tablets 7.18pc and injection 15.08pc during February.
Cooking oil and vegetable ghee witnessed increases of 10.11pc and 9.31pc respectively whereas blended tea fell by 13.21pc.
According to the Annual Plan 2019-20, the industry output is expected to expand with the implementation of envisaged policy measures. It anticipates private sector investment to lead the revival of activity with the help of necessary regulatory support.
Published in Dawn, April 19th, 2020
