Big industry output drops by 3.68% YoY in 1HFY23

February 15, 2023 (MLN): The Large Scale Manufacturing Industries (LSMI) output has declined by 3.68% YoY during the first half of the fiscal year 2022-23 compared to the same period in the previous year, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.

The factors that have contributed to the overall negative growth rate of -3.68% are mainly attributed to several industries. The food and tobacco industries have contributed -0.36 and -0.60 respectively, while the textile industry has shown the highest negative impact of -2.75.

On the other hand, there have been some positive growth rates such as 4.06 in the garments industry, but industries like petroleum products, cement, pharmaceuticals, and automobiles have also shown negative impacts, with growth rates of -0.80, -1.04, -1.21, and -1.36 respectively.

The provisional Quantum Index numbers (QIM) of the LSM also showed a 3.51% YoY drop for the month of December 2022, as compared to the same period in the previous year. However, the output increased by 12.38% MoM when compared with November 2022.

The LSMI Quantum Index Number (QIM) was estimated at 125.31 for the period of July-December 2022-23, while it was estimated at 113.60 for December 2022.

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.

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