September 18, 2023 (MLN): Pakistan’s Large Scale Manufacturing Industries (LSMI) production has registered a decrease of 1.09% YoY in July 2023 to stand at 108.01 compared to 109.2 in July 2022, the Pakistan Bureau of Statistics (PBS) reported today.
Similarly, on a month-on-month basis, the LSMI growth witnessed a decrease of 3.62% against 112.07 recorded in June 2023.
The main contributors towards overall growth of -1.09% are Food (1.14), Tobacco (0.30), Textile (-4.69) Garments (4.31), Petroleum Products (-0.16), Chemicals (0.49), Pharmaceuticals (2.28), Cement (1.52), Iron & Steel Products (-0.14), Electrical Equipment (-0.97) and Automobiles (-2.59), Paper & Board (-0.38) and Furniture (-1.85).
The production in July 2023 as compared to July 2022 has increased in Food, Tobacco, Wearing apparel, Chemicals, Pharmaceuticals, Non Metallic Mineral Products and Other Manufacturing (Football) while it decreased in Beverages, Textile, Coke & Petroleum Products, Iron & Steel Products, Electrical Equipment, Automobiles, Other Transport Equipment and Furniture.
This negative growth in LSMI output in July 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 Large Scale Manufacturing Industries (LSMI) for July 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 Bureaux of Statistics (BoS).
