- The LSM sector has been showing contraction since the beginning of FY23.
- LSM had zero growth in September 2022.
- LSM dominates the overall manufacturing sector, accounting for 74.3 percent.
Islamabad: Mass manufacturing (LSM) production declined by 0.4% in July-September FY23 compared to the same quarter last fiscal. Expensive inputs Due to Devaluation of Rshigh financial costs, and the global slowdown took a toll.
The LSM sector, which contributes 9.2 percent to Pakistan’s GDP, has been shrinking since the beginning of FY23.
Sectors contributing significantly to the LSM – including textiles, automobiles, pharmaceuticals, food, coke and petroleum products, and non-metallic minerals – registered significant declines.
In September 2022, the LSM showed zero growth compared to the same month a year ago. However, compared to the previous month, its output increased marginally by 0.1%, the Pakistan Bureau of Statistics (PBS) reported on Wednesday.
It should be noted that on Monday the Minister of State for Finance Ayesha Ghos Pasha told the parliamentary panel that The country’s GDP growth rate may fall short of the target by 2 percent And tax collection will also be affected.
He attributed the slowdown to the recent devastating floods. However, he did not mention other structural issues that were hampering development.
LSM dominates the overall manufacturing sector, accounting for 74.3 percent of the sectoral share followed by small-scale manufacturing, accounting for 2 percent of total GDP and 15.9 percent of the sectoral share.
Slaughter accounts for 1.2% of GDP with a sectoral share of 9.7%. Overall, the manufacturing sector contributed 12.4 percent to the country’s GDP.
From the start of FY23 in July, LSM production growth turned negative. In July 2022, LSM growth showed negative growth of 16.5% compared to June 2022 and 1.4% compared to July 2021.
Compared to the same period of the previous financial year, the production in July-September of FY23 has increased in apparel, chemicals, iron and steel products and furniture, while in food, tobacco, textiles, coke and petroleum products, pharmaceuticals, rubber products. It has decreased. , non-metallic mineral products, fabricated metal, electrical appliances, machinery and equipment, automobiles and other transportation equipment.
A volatile rupee, high energy costs, and tight monetary and fiscal policies also affected production, while a decline in international demand was also a factor in the decline in the sector.
malfunction
In September, garment production fell by 52.2 percent, beverages by 11.6 percent, leather by 5 percent, wood products by 58.5 percent, chemicals by 9.7 percent (including a 1.9 percent decline in chemical production, and fertilizer by 18.8 percent), furniture. 54.3 percent and other manufacturing increased. Footballs) production increased by 69.6% compared to the same month last year.
During this month, iron and steel production increased by 7 percent, food 3.2 percent, tobacco 10.8 percent, textiles 2.5 percent, coke and petroleum products 24.4 percent, pharmaceuticals 22.5 percent, rubber products 13.9 percent, non-metallic. And production of mineral products declined. 1%, manufactured products 24.6%, computer, electronics, and optical products 18.4%, electrical appliances 2%, machinery and equipment 34.1%, automobiles 32.8% and other transportation equipment production compared to the same month last year. decreased by 43.2%. Cement production also declined by 1.5 percent.
Comparing the production of July-September FY23 with FY22, production of beverages increased by 3%, garments by 58%, leather by 8.4%, wood products by 23.5%, chemicals by 4.1% (6.9% in chemical products and 6.9% in fertilizers). 2.2% increase). In addition, production of iron and steel products increased by 4.9 percent, furniture by 12.6 percent, and other manufacturing (football) by 59 percent compared to the same period a year ago.
Food production 6.2 percent, tobacco 31.2 percent, textiles 3.3 percent, coke and petroleum products 18.9 percent, pharmaceuticals 29 percent, rubber products 7.1 percent, non-metallic mineral products 13 percent, fabrication 18.7 percent; Computer, electronics, and optical products 9.6%, electrical appliances 3.5%, machinery and equipment 37%, automobiles 2.6%. In addition, the production of other transport equipment decreased by 42.2% compared to the same period last year.
Originally published in The News.