KARACHI: In yet another manifestation of the economic slowdown, sales by a majority of listed firms dropped for the second consecutive quarter in October-December.

Speaking to Dawn on Saturday, Arif Habib Ltd Head of Research Tahir Abbas said the combined revenue of the publicly traded companies went down 0.1 per cent to Rs2.59 trillion on a sequential basis in October-December — an unusual development given that top lines of large companies tend to expand amid high inflation.

“The decline in absolute sales numbers is mainly because of oil, which shrank in terms of both value and volume. Excluding that, quarterly revenues increased 3.3pc from the preceding three-month period.”

Mr Abbas pointed out that sales in volumetric terms have gone down in most sectors owing to the economic slowdown coupled with high inflation.

Combined revenue of publicly traded companies down 0.1pc to Rs2.59tr

“Cement, auto, steel and textile are some of the sectors that’ve seen a significant drop in volumetric sales,” he said, adding that this decline has been overshadowed by rising revenue numbers amid high inflation.

Another reason for the declining volumetric sales is the import curbs imposed by the State Bank of Pakistan (SBP) to minimise the dollar outflow.

In particular, Mr Abbas referred to the auto sector, which has seen price increases of up to 75pc in a year or so while its volumetric sales have dropped to multi-year lows.

“The situation is reflective of two things: one, the overall economic slowdown has robbed people of their purchasing power. And two, official curbs on the imports of raw material have forced companies to scale back their operations,” he said.

There’s been “no visible wage growth” in Pakistan even though inflation is at a multi-decade high. In fact, joblessness seems to be rising given the production shutdown notices that listed firms have been issuing rather frequently of late, he added.

The analysis of quarterly sales data by the brokerage house is based on the latest financial results by 69 of the top 100 listed companies. It excluded commercial and investment banks, insurance companies, leasing firms, modarabas and mutual funds for the analysis while 11 companies have yet to announce their results.

As for profitability, however, companies that’re part of the KSE-100 index posted a quarterly increase of 5.1pc in October-December. The rise was led by banks whose earnings grew 20.8pc from the preceding quarter owing to a lower tax charge. Profits of cement companies rose 59.8pc quarter-on-quarter partly because of their use of cheaper coal.

Published in Dawn, March 12th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

From hard to harder

From hard to harder

Instead of ‘hard state’ turning even harder, citizens deserve a state that goes soft on them in delivering democratic and development aspirations.

Editorial

Canal unrest
Updated 03 Apr, 2025

Canal unrest

With rising water scarcity in Indus system, it is crucial to move towards a consensus-driven policymaking process.
Iran-US tension
03 Apr, 2025

Iran-US tension

THE Trump administration’s threats aimed at Iran do not bode well for global peace, and unless Washington changes...
Flights to history
03 Apr, 2025

Flights to history

MOHENJODARO could have been the forgotten gold we desperately need. Instead, this 5,000-year-old well of antiquity ...
Eid amidst crises
Updated 31 Mar, 2025

Eid amidst crises

Until the Muslim world takes practical steps to end these atrocities, these besieged populations will see no joy.
Women’s rights
Updated 01 Apr, 2025

Women’s rights

Such judgements, and others directly impacting women’s rights should be given more airtime in media.
Not helping
Updated 02 Apr, 2025

Not helping

If it's committed to peace in Balochistan, the state must draw a line between militancy and legitimate protest.