ISLAMABAD: The Large-Scale Manufacturing (LSM) sector contracted 1.25 per cent in the first five months of 2024-25, data released by the Pakistan Bureau of Statistics showed on Wednesday.

Since August 2024, the LSM has declined for two consecutive months. Domestic and global factors contributed to the downturn in FY24. The LSM grew positively from December 2023 to May 2024 before entering negative territory in June.

On a YoY basis, LSM dipped 2.65pc in August, followed by a decline of 1.92pc in September. However, LSM recorded a paltry growth of 0.02pc in October before entering a negative growth of 3.81pc in November.

The LSM recorded a growth of 2.38pc in July 2024 on a YoY basis. In FY24, the LSM sector contracted 0.03pc against a 0.92pc growth in the preceding year.

LSM sector contracts 1.3pc in July-November

The food group expanded by 1.72pc in 5MFY24 on a YoY basis. Cooking oil, starch-related items and wheat and rice milling experienced a rise of 1.06pc, 0.45pc, and 4.48pc, respectively. Wheat and rice milling increased substantially less during the period under review, owing primarily to improved crop harvests.

However, vegetable ghee production declined by 3.06pc and tea blended by 5.02pc.

The textile sector grew 2.28pc in 5MFY24 on a YoY basis. Cotton yarn has increased by 8.79pc, while cotton cloth increased by 0.80pc, accounting for more than 80pc of the textile sector. The primary cause of the rise in production was a slight increase in export unit value in the face of higher external demand for textiles.

The exports of garments recorded a growth of 11.49pc on a YoY basis. The surge in garment exports is primarily due to diverting foreign purchasers from Bangladesh to Pakistan.

Coke and petroleum products recorded a negative growth of 2.44pc in 5MFY24. Petrol production declined by 4.79pc and high-speed diesel by 1.44pc. However, kerosene production was up by 13.83pc, followed by lubricating oil by 10.66pc, jute batching oil by 33.17pc and solvent naphtha by 53.45pc.

The furnace oil production dipped 2.67pc, LPG 13.19pc and jute fuel oil 18.52pc.

Growth of the automobile sector recorded a growth of by 50.70pc in 5MFY24 on a YoY basis. This growth was mainly contributed by a growth of 48.17pc in jeeps and cars, followed by LCVs 205.73pc, trucks 101.47pc, and buses 37.32pc. However, the production of diesel engines declined by 8.94pc during the months under review.

Published in Dawn, January 16th, 2025