LSMI drops by 7.9% YoY in January

March 14, 2022 (MLN): Pakistan’s Large Scale Manufacturing Industries (LSMI) production has decreased by 7.9% YoY in January 2023 to stand at 126.85 compared to 137.73 in January 2022, Pakistan Bureau of Statistics (PBS) reported on Tuesday.

However, on a month-on-month basis, the LSMI growth witnessed a meager increase of 1.5% against 124.99 recorded in December 2022.

On a cumulative basis, during 7MFY23, the LSMI reduced by 4.4% YoY to 115.45 compared to 120.77 in 7MFY22. 

The main contributors to the overall growth of -4.40% are Food (-0.32), Tobacco (-0.55), Textile (-2.71) Garments (3.81), Petroleum Products (-0.69), Cement (-0.86), Pharmaceuticals (-1.22), and Automobiles (-1.55).

The production in July-January 2022-23 as compared to July-January 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 January 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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