ISLAMABAD: Large-scale manufacturing (LSM) continued to rise modestly in January for the third consecutive month, showing a partial recovery in industrial production, showed data released by the Pakistan Bureau of Statistics on Friday.

LSM posted a growth of 1.84 per cent in January on a year-on-year basis. On a month-on-month basis, it grew 0.03pc.

In December 2023, the growth in LSM was noted at 3.43pc and 1.59pc in November, respectively. The main contributors to the positive growth are beverages, wearing apparel, leather products, electrical equipment, pharmaceuticals and chemicals.

The LSM turned positive in August 2023 after 14 months of contraction and extended the growth in September as well. However, the big industry output shrank 4.08pc in October on a year-on-year basis. The removal of import restrictions, clearance of outstanding letters of credit and improved dollar liquidity following improvement in the SBP forex reserves are considered to help pick up economic activity.

Economic activities are picking up with easing import curbs and improved dollar liquidity

The LSM remained positive in January as 10 out of 22 sectors picked up positive growth, including beverages (2.02pc), wearing apparel (28.06pc), leather products (10.43pc), wood products (26.97pc), chemicals (19.23pc), pharmaceuticals (16.58pc), machinery and equipment (161.93pc), other manufacturing (11.84pc).

The LSM shrank 0.52pc in the first seven months of the current fiscal year.

In the textile and clothing sector, positive growth was observed in yarn 0.50pc and cloth 0.60pc in January from a year ago. However, a massive growth of 28.06pc was recorded in the garment sector in January from a year ago.

In the food group, wheat and rice production posted a negative growth of 8.0pc in January over the same month last year. The production of cooking oil rose 6.79pc while vegetable ghee saw a decline of 9.24pc during the month.

Petroleum products posted a negative growth of 2.42pc in January, mainly because of a decline in kerosene of 19.80pc, followed by a 19.69pc dip in jute batching oil, 21.23pc in solvent and naphtha and 16.37pc in furnace oil. However, an increase in the production of petrol was noted at 4.01pc, high-speed diesel 0.76pc and LPG 2.75pc.

In January, iron and steel production increased 1.04pc. However, electrical equipment increased by 1.53pc.

The production of fertilisers experienced a surge of 30.32pc, while the production of rubber items witnessed a growth of 8.13pc.

The production of pharmaceutical products experienced a significant surge, with an impressive increase

of 16.58pc. The manufacturing of machinery and equipment saw a growth of 161.63pc.

Published in Dawn, March 16th, 2024