ISLAMABAD: The large-scale manufacturing sector grew 10.7% in the first 10 months of the current fiscal year – a momentum that may be lost in the next fiscal year due to the increasing cost of production and the policy to slow down the economy.
PBS stated that the sugar, cigarette, textile, and chemical sectors contributed positively to the LSM sector, which kept growth in double digits.
The annual increase in LSM was recorded at 15.4% in April over a year ago, as a low base impact also helped in keeping the growth rate high. However, on a month-on-month basis, the growth rate slumped 13.3% in April over the preceding month.
The industries that posted growth in the first 10 months (July-April) of the current fiscal year included textile, which registered a 3.7% expansion in the index. Textile is the largest sector in the LSM index, having an 18.2% weight.
The production of apparel wears increased by 41% while the output of the food industry rose 11% during the period under review. The beverages sector’s production grew marginally by 1.5%.
Coke and petroleum products’ output grew by over 1% while the chemicals’ output rose 8.3%, according to the national data collecting agency.
The output of the automobile sector increased by 48% while the iron and steel sector saw a growth of 16.3%. The manufacturing of leather products rose 1.6%.
The paper and board sector grew 8.2% and the production of wood products expanded 135% but their weight is very low in the overall index, having little impact on the growth rate.
Three sectors remained in the red during the July-April period. These were rubber products whose output decreased by 19%, transport equipment which shrank by 11%, and minerals which contracted slightly during the current fiscal year.