May 15, 2023 (MLN): The Large Scale Manufacturing Industries (LSMI) output has declined by almost 25% YoY and 9.09% MoM to stand at 115.31 in March 2023 compared to 153.72 in March 2022 and 126.84 in February 2023, respectively, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
Within 9MFY23, the big industry output has dropped by 8.11% YoY to 116.57 compared to 126.86 in the same period last year.
The main contributors to overall negative growth in 9MFY23 are Food, Tobacco, Textile, Garments, Petroleum Products, Cement, Pharmaceuticals, and Automobiles.
It is important to note that the production in July-March 2023 as compared to July-March 2022 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 provisional quantum indices of LSMI for March 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).
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.