Big industry output drops by 21.07% YoY in April

June 15, 2023 (MLN): Pakistan’s Large Scale Manufacturing Industries (LSMI) production has decreased by 21.07% YoY in April 2023 to stand at 104.65 compared to 132.60 in April 2022, Pakistan Bureau of Statistics (PBS) reported today.

Similarly, on a month-on-month basis, the LSMI growth witnessed a decline of 9.78% against 115.99 recorded in March 2023.

On a cumulative basis, during 10MFY23, the LSMI reduced by 9.39% YoY to 115.46 compared to 127.43 in 10MFY22.

The main contributors towards the overall growth of -9.39% are Food (-1.52), Tobacco (-0.65), Textile (-3.53) Garments (2.66), Petroleum Products (-0.75), Chemicals (-0.48), Cement (-0.87), Pharmaceuticals (-1.41), Iron & Steel Products (-0.22), Electrical Equipment (-0.44) and Automobiles (-1.98).

The production in July-April 2022-23 as compared to July-April 2021-22 has increased in Wearing apparel, Furniture, and Other Manufacturing (Football) while it decreased in Food, Tobacco, Textile, Coke & Petroleum Products, Pharmaceuticals, Chemicals, Non-Metallic Mineral Products, Machinery and Equipment, Automobiles and Other Transport Equipment.

The negative growth in LSMI output has been attributed to a range of factors including weak macros, monetary tightening, supply chain disruptions, and an increase in energy costs. Additionally, political instability in the country has also contributed to the shrinking output.

Overall, the decline in LSMI output represents a significant challenge for Pakistan's economy and highlights the need for continued investment and support for the country's industrial sector.

The provisional quantum indices of LSMI for April 2023 with the base year 2015-16 have been developed on the basis of the latest data supplied by the source agencies i.e OCAC, Ministry of Industries & Production, Ministry of Commerce and Provincial Bureau of Statistics (BoS).

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