Large-scale manufacturing output declines 13.3% in April – Business
ISLAMABAD: In the first month of the PML-N-led coalition government, large-scale manufacturing (LSM) fell 13.3% month-on-month in April, the Pakistan Bureau reported on Thursday. statistics (PBS).
Large industry posted robust growth of 26.6% in March, the last month of the PTI government. However, LSM rose 15.4% year-on-year in April. The production estimate for LSM industries was made on the new base year of 2015-16. However, the PBS also released a separate estimate with the old 2005-06 base.
According to the old 2005-06 base, the LSM rose by 5.3 pc in April compared to a year ago. On a monthly basis, production in industry fell by 22.8 pc. Calculations of both estimates show a downward trend as LSM entered negative growth on a monthly basis.
During the first 10 months (July-April) of the current financial year, LSM increased by 10.7 pc on an annual basis according to the new basis. However, growth is calculated at 6.7 pc over 10 months on the basis of the old 2005-06 base. The PBS snapshot of manufacturing activity showed that seven of the LSM’s 15 subsectors fell in April. High interest rates and the depreciation of the rupee have further increased the cost of raw materials, and economic activity is expected to slow slightly in the current fiscal year.
Production up 10.7% YoY in 10MFY22
The LSM, at 9.73% of GDP, dominates the entire manufacturing sector, accounting for 76.1% of the sectoral share. It is followed by small-scale manufacturing, which accounts for 2.12% of GDP and 16.6% of sectoral share.
According to PBS data, the entire automotive sector, excluding LCVs and trucks, posted strong growth in April compared to the same period a year ago. Production of tractors jumped 17.3pc, Jeeps 66.5pc and Jeeps 29.5pc, respectively.
Production of buses increased by 33.3 pc and that of diesel engines by 139 pc. However, LCV production fell by 4.5 pc and LCV by 64.4 pc. The production of motorcycles fell by 11.7 pc, while that of bicycles increased by 49.2 pc.
In the non-metallic minerals sector, cement production fell by 20.5 pc in April. The production of glass plates and sheets, on the other hand, increased by 147.3 pc. In the steel industry, billets and ingots increased by 28 pc.
The production of phosphate fertilizers increased by 2.1 pc respectively in April and that of nitrogen fertilizers by 4.2 pc.
In pharmaceutical products, the production of tablets fell by 14.7 pc, injections by 43.1 pc and capsules by 57.6 pc. However, the production of syrups increased by 77.7% and that of ointments by 13%, respectively.
On the other hand, cooking oil production showed a positive growth of 22.6% in April compared to a year ago. However, blended tea fell 9.9% in April from a year ago, while production of wheat and grain milling fell 3.1%.
Production of a few petroleum products posted negative growth in April. Production of all products excluding jet fuel, diesel and lubricating oil recorded negative growth during the month under review.
Posted in Dawn, June 17, 2022