ISLAMABAD - Country’s Large Scale Manufacturing (LSM) sector has posted impressive growth of over six percent during seven months (July-January) of the current financial year over a year ago owing to improved energy situation and business-friendly policies of the incumbent government.
The incumbent government is providing improved power supply to the industries this fiscal year compared to previous. Therefore, the industrial sector, especially, LSM sector has recorded healthy growth in first seven months (July to January) of the year 2013-14 that revives the hope of industrialisation in the country.
The government had estimated that country’s GDP growth by about 4.4 percent for the current fiscal year. The government’s estimates for economic growth largely based on performance of the LSM sector. Industrial sector has 20.9 percent share in Pakistan GDP while LSM being a sub-sector of manufacturing has 10.6 percent share.
According to the latest figures of Pakistan Bureau of Statistics (PBS), the Quantum Index Number (QIM) of LSM industries stood at 118.49 points during July 2013 to January 2014 period as compared to 111.73 points of the corresponding period of its preceding year, showing an increase of 6.05 percent. Meanwhile, LSM sector has registered growth of 2.58 percent in January 2014 compared to same month last year.
The PBS compute LSM figures on production data received from the Oil Companies Advisory Committee (comprising 11 items), Ministry of Industries and Production (36 items) and the Provincial Bureaus of Statistics (65 items).
According to the PBS figures, growth in LSM was mainly driven by 12 categories of items in the July-December period of 2013-14 over the corresponding period of last year. Major contribution towards positive growth was from textile 1.59 percent, food and beverages 15.78 percent, petroleum products 5.38 percent, paper and board 13.34 percent, pharmaceutical 0.12 per cent, fertilizers 25.43 per cent, electronics 9.47 percent, iron and steel products 4.12 per cent, leather products 5.18 per cent, chemicals 6.33 percent, non-metallic mineral products 0.86 percent and rubber products 8.73 percent.
However, some sectors like wood products witnessed a decline of 9.12 percent, engineering products 24.05 percent and automobiles 2.23 percent during the months under review.
In electronic and electrical goods, production of refrigerators recorded a growth of 9.75 percent; deep-freezers was up by 105.48 percent; air-conditioners 136.79 percent; electric bulbs 11.25 percent; electric motors 26.02 percent; switch gears 162.28 per cent and TV sets 11.46 percent during the period under review over the same months last year.
However, electric tubes production witnessed a negative growth of 70.46 percent, electric fans 9.04 percent, electric meters 55.04 percent, transformers 17 per cent and bicycles 10.57 percent during July-January period of 2013-14 over the same months last year.
Meanwhile, in automobile sector, tractors production was down by 36.43 percent, jeeps and motorcycles 0.59 percent during the period under review over the last year.
The production of trucks however was up by 29.29 percent; buses 13.64 percent, jeeps and cars 1.06 per cent and LCVs 26.16 percent during the July-January period in 2013-14 over the last year.