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ISLAMABAD: The Large-Scale Manufacturing (LSM) sector contracted 2.65 per cent year-on-year in August, according to data released by the Pakistan Bureau of Statistics on Thursday.
The LSM enters a negative growth following a positive growth of 2.38pc in July. The LSM has grown positively for the last six months since December 2023 before entering negative territory in June.
In FY24, the LSM witnessed a negative growth of 0.03pc.
The quantum index of LSM industries was 111.33 points in August compared to 114.36 in the same month last year. However, it surged from July’s 106.35 points.
For the first two months (July-August), the LSM showed a negative growth of 0.19pc year-on-year.
Eleven out of 22 sectors recorded negative growth in August. These sectors included beverages, textiles, paper and board, chemicals, automobiles, non-metallic mineral products, iron and steel products, fabricated metals, computers, electronics and optical products, electrical equipment and furniture.
The food group expanded by 0.41pc in August year-on-year. This growth was mainly contributed by wheat and rice milling, up by 4.20pc during the month under review. However, cooking oil, vegetable ghee, and tea blended experienced a decline of 0.02pc, 4.76pc, and 24.20pc.
The textile sector fell 0.86pc in August 2024 on year-on-year. Among the textile sector, cotton yarn has increased by 8.80pc, and cotton cloth by 0.74pc, accounting for more than 80pc of the textile sector. However, the other textile products recorded a negative growth during the month under review. The production of the garments sector continued a robust growth of 18.69pc in August, mainly because of high export orders.
Coke and petroleum products recorded a growth of 8.40pc year-on-year in August. Diesel oil increased 12.80pc, petrol 5.71pc, furnace oil 9.24pc, kerosene 33.96pc and jet fuel 6.35pc. However, LPG recorded a negative growth of 11.51pc.
Growth of the automobile sector plunged by 9.08pc year-on-year in August. The growth was recorded only in the production of LCVs 60.28pc and trucks 53.23pc, respectively. The production of jeeps rose 34.87pc. However, the production of cars dipped 30.04pc in August.
Iron and steel production fell 14.38pc in August year-on-year. Billets/ingots, mostly used in the construction industry, experienced a 33.33pc decline. Similarly, H/C.R. sheets/strips/coils/plates dipped by 3.19pc.
The non-metallic mineral products contracted by 26.55pc on YoY basis. Higher financial costs, lower real incomes, and a reduction in the Federal Public Sector Development Programme have continued to impact construction activities.
The chemical products showed a contraction of 4.60pc on YoY basis, while fertilizer production stood at 3.37pc increase. Pharmaceuticals witnessed a paltry growth of 0.16pc in August on YoY basis. Pharmaceutical production increased due to the timely availability of imported medicinal raw materials.
Electrical equipment declined by 18.20pc on YoY basis. The smuggling of products is the primary reason for the decline. The furniture group’s recorded a negative growth of 52.32pc on YoY basis, while rubber products grew by 1.82pc compared to 1.54pc last year. The production of footballs decreased by 4.13pc during the month under review.
Published in Dawn, October 18th, 2024
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