ISLAMABAD: The growth in Large-Scale Manufacturing (LSM) production slowed down to 1.19 per cent in September, which is the lowest in the current fiscal year, showed Pakistan Bureau of Statistics (PBS) data released on Thursday.

The second-lowest LSM expansion was noted in July at 2.25pc, which revived to 12.74pc in August. However, on a month-on-month basis, the big industry production contracted by 0.72pc.

The slowdown in September is in the stark contrast compared to the preceding month when the LSM posted a double-digit growth and the government claimed revival of industrial production after a long slump due to the Covid-19 pandemic.

In the first quarter, LSM grew by 5.15pc on a year-on-year basis.

In 2020-21, the LSM showed the highest growth of 14.85pc and the government claimed that the slump in industrial production has come to an end.

Since July 2020, the LSM has rebounded after suffering months of a downturn on account of the Covid-19 pandemic, mainly in the automobile, construction, textile, food, chemicals, non-metallic mineral products and pharmaceutical sectors.

The PBS snapshot of manufacturing activity showed that 10 out of 15 sub-sectors in the LSM dipped in September. Low interest rates and reduction in duties on raw materials are expected to further spur economic activities during the current fiscal year.

Sector-wise, production of 11 items under the Oil Companies Advisory Committee surged by 9.57pc year-on-year in September. The 36 items under the Ministry of Industries and Production rose by 2.16pc, while 65 items reported by the provincial bureaus of statistics were dipped by 2.51pc.

The LSM at 9.73pc of GDP dominates the overall manufacturing sector, accounting for 76.1pc of the sectoral share. It is followed by Small Scale Manufacturing which accounts for 2.12pc of GDP and 16.6pc sectoral share.

As per the PBS data, the entire automobile sector excluding tractors, buses and motorcycles showed strong growth in September compared to the same period from a year ago. Production of tractors dipped by 28.57pc, buses 19.15pc and motorcycles 15.52pc, respectively.

The production of trucks surged by 142.92pc, jeep and cars by 57.46pc, and LCVs by 81.40pc.

Cement output also dipped by 2.44pc in September despite the fact that there is a greater demand following the start of construction activities and increase in exports. The production of paints and varnishes declined by 7.94pc and cigarettes by 24.33pc. However, in the steel sector, billets and ingots posted growth of 15.34pc.

In pharmaceuticals, the output of tablets dipped by 37.83pc, injection by 30.44pc, and capsules by 39.57pc. However, the output of syrups is up by 85.23pc.

On the other hand, cooking oil production rebounded and posted a growth of 3.31pc and tea blended by 28.20pc. However, vegetable ghee production fell by 2.26pc while wheat and grain milling output dipped by 4.76pc.

The output of petroleum products rose by 9.57pc in September. The output of two oil products — petrol and high-speed diesel — was up by 3.58pc and 11.55pc, respectively, whereas furnace oil production was up by 0.91pc, kerosene 9.6pc.

The production of LPG was up by 23.72pc, followed by lubricating oil 52pc, jute batching oil 32.24pc and solvent naphtha by 19.77pc, respectively.

Published in Dawn, November 19th, 2021