Large-scale manufacturing (LSM) decreases by 6.48pc in four months
The LSM output decreased by 7.97% for October 2019, as compared to October of last year.
Pakistan’s Large-scale Manufacturing (LSM) output slimmed for the seven months in a row, showing no possibility of renewal in the near future.
The output of LSM decreased by 6.48% for July-Oct, 2019-20 as compared to the same period last year. As per the reports of the Pakistan Bureau of Statistics (PBS), LSM index contracted by almost 8% year-on-year in the fourth month of 2019-20.
During the fourth month of 2019-20, this industry was cut down by 5.8%.
The LSM output decreased by 7.97% for October 2019, as compared to October of last year. But, it increased by 4.01% as compared to September 2019.
In 2018-19, a decline was seen in three departments or sectors of LSM, which is against the government’s growth aim of 8.1%. The government’s goal now is to see an increase of 3.1% for 2019-20.
Exports leather products and fertilizers increased:
Production of leather products and fertilizers increased in July-Oct of 2019-20 but at the same time the production of food, beverages, coke, petroleum products, tobacco, iron products, pharmaceuticals, electronics, and steel products.
During the period July-October, 2019, an increase was seen in textile by 0.18%, leather products by 7.74%, electronics by 5.51%, engineering products by 8.3%, fertilizers by 10.71% and so on.
During the four months period sector-wise, production data of 11 items under the oil companies’ advisory committee showed a decrease of 0.77% whereas 36 items under the Ministry of Industries and Production also decreased by 4.89% and 65 items by 2.30%.
This unimpressive performance in the industrial sector shows the overall economic slowdown across numerous departments in the on-going fiscal year. LSM constitutes about 80% manufacturing and 10.7% of GDP (Gross Domestic Product). Small-scale manufacturing makes up 1.8% of GDP and 13.7% of manufacturing.
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