ISLAMABAD: The Pakistan Bureau of Statistics (PBS) reported on Monday that large-scale manufacturing (LSM) rose 21.4% year-on-year in May.
However, on a monthly basis, the LSM fell 1.3% in May. In the first month of the PML-N-led coalition government, output in large industry fell 13.3 percent month-on-month.
In the first 11 months (July-May) of FY22, LSM grew 11.7% year on year on the new basis. However, growth is calculated at 7.1 pc over 11 months on the basis of the old 2005-06 base.
Large industry posted robust growth of 26.6% in March, the last month of the PTI government. In April, however, LSM rose 15.4% year-on-year. The production estimate for LSM industries was made on the new base year 2015-16. However, the PBS also released a separate estimate with an old base of 2005-06.
Month-to-month output of major industries fell 1.3% in May
According to the old 2005-06 base, LSM rose 9.9% in May from a year ago. On a monthly basis, production in industry fell by 0.04 pc. Calculations of both estimates show a downward trend as LSM entered negative growth on a monthly basis.
The PBS snapshot of manufacturing activity showed five of the LSM’s 15 sub-sectors fell in May. High interest rates and the depreciation of the rupee have further increased the cost of raw materials, and economic activity is expected to slow slightly in the current fiscal year.
The LSM, at 9.73% of GDP, dominates the entire manufacturing sector, accounting for 76.1% of the sectoral share. It is followed by small-scale manufacturing, which accounts for 2.12% of GDP and a sectoral share of 16.6%.
According to PBS data, the entire automotive sector posted strong growth in May compared to the same period a year ago. Tractor production increased by 6.1 pc, Jeep production by 113 pc and Jeep production by 48.8 pc.
Production of buses increased by 103.7 pc and that of diesel engines by 70.5 pc. However, LCV production jumped by 10.9 pc and that of trucks by 8.5 pc. The production of motorcycles fell by 6.9%, while that of bicycles increased by 44.3%.
In the non-metallic minerals sector, cement production fell by 1.5 pc in May. The production of glass plates and sheets, on the other hand, increased by 173 pc. The steel industry increased its production of billets and ingots by 47.2 pc.
In May, the production of phosphate fertilizers increased by 3.6 pc and that of nitrogen fertilizers by 2.5 pc, respectively.
In pharmaceutical products, the production of tablets fell by 9.3 pc, injections by 45.1 pc and capsules by 48.3 pc. However, the production of syrups is up by 190.6 pc and that of ointments by 8.8 pc, respectively.
On the other hand, the production of cooking oil showed a negative growth of 1.3 pc and that of vegetable ghee of 8.5 pc in May compared to a year ago. However, blended tea fell 34.7% in May from a year ago, while production of wheat and grain milling fell 2.5%.
Production of a few petroleum products, including gasoline and diesel, showed positive growth in May.
Posted in Dawn, July 19, 2022