ISLAMABAD: Large-scale manufacturing (LSM) grew by 11.4 per cent in December — the highest monthly expansion in the last over 10 years, data released by the Pakistan Bureau of Statistics (PBS) showed on Friday.

The double-digit growth continued in December on the back of higher automobile and cement production, which indicates revival of industrialisation. In November, LSM grew by 14.5pc on a year-on-year basis.

During the first half (July-December) 2020-21, LSM grew by 8.16pc.

Minister for Industries Hammad Azhar took to Twitter to say robust growth trends of LSM has continued in December. The V-shaped economic recovery in Pakistan is led by industries, he added.

Pakistan is successfully reversing the tide of de-industrialisation that began in 2008, he said. Capacity enhancements, new investments and modernisations are already in play, he said, adding that industry posting strong growth.

Double-digit growth comes on the back of higher automobile and cement production

Planning Minister Asad Umar said on his official Twitter account another double-digit growth month for LSM in December. The industrial sector now showing sustained strong growth, he added.

Since July, LSM has rebounded after suffering months of a downturn on account of Covid-19 mainly in the construction, textile, food, chemicals, non-metallic mineral products, automobile and pharmaceutical sectors. The uptick during the first half of FY21 reflects a revival in economic activities.

The PBS snapshot of the manufacturing activity showed that 10 out of 15 sub-sectors in LSM rose during the month under review. Low-interest rates and reduction in duties on raw materials are expected to further spur economic activities in the current fiscal year.

Sector-wise, production of 11 items under the Oil Companies Advisory Committee were up by 23.91pc year-on-year during December. The 36 items under the Ministry of Industries and Production rose by 13.62pc, while 65 items reported by the provincial Bureaus of Statistics grew 2.89pc.

LSM represents nearly 80pc of the country’s total manufacturing and accounts for nearly 10.7pc of the national output. In comparison, the small-scale industry makes up for just 1.8pc of GDP and 13.7pc of the secondary sector.

As per the PBS data, sub-sectors excluding trucks and buses within the automobile sector posted massive growth in December from a year ago. Production of tractors rose by 437.26pc, jeep and cars 44.26pc, LCVs 237.18pc, and motorcycles 23.66pc during the month under review. The production of trucks dipped 13.48pc and buses 12.73pc.

The cement output also grew 18.56pc during the month under review on the back of greater demand following the start of construction activities and increase in exports from the country. The production of paints and varnishes was up 86.67pc. Sugar production is up by 210pc in December from a year ago due to the start of the sugar crushing season.

In pharmaceuticals, the output of syrups rose by 29.99pc, injection 25.81pc, and capsules 35.84pc. The output of tablets dipped 3.29pc, and ointments 9.83pc, respectively.

On the other hand, vegetable ghee, and cooking oil production dipped by 2.39pc and 7.03pc, respectively. However, the production of tea, wheat and grain milling output grew 6.39pc and 62.67pc, respectively.

The data for December showed that output of petroleum products up by 23.91pc. The output of two oil products — petrol and high-speed diesel was up 30.17pc and 23.56pc, respectively whereas furnace oil production increased by 40.09pc, kerosene 4.46pc and lubricating oil 62.76pc during the month under review.

The production of solvent naphtha up by 39.28pc and LPG 8.17pc during the month of December from a year ago.

The production of other petroleum products post 11.63pc negative growth.

Published in Dawn, February 13th, 2021