ISLAMABAD: The Pakistan Bureau of Statistics (PBS) reported on Monday that large-scale manufacturing (LSM) grew 21.4 per cent year-on-year in May.

However, on month-on-month basis the LSM shrank by 1.3pc in May. In the first month of the PML-N-led coalition government, the big industry output shrank 13.3pc month-on-month.

In the first 11 months (July-May) of FY22, LSM grew by 11.7pc on a YoY basis as per the new base. However, the growth is calculated at 7.1pc in the 11 months on the basis of the old base-2005-06.

The big industry posted a robust growth of 26.6pc in March, the last month of the PTI government. In April, however, the LSM increased by 15.4pc YoY. The production estimation for LSM industries was made on the new basis year of 2015-16. However, the PBS also released a separate estimation with an old base of 2005-06.

Month-on-month, big industry production shrinks 1.3pc in May

As per the old base 2005-06, the LSM grew by 9.9pc in May compared to a year ago. On a month-on-month basis, the industry’s production declined by 0.04pc. The calculations in both estimations show a downward trend as LSM entered negative growth on a month-on-month basis.

The PBS snapshot of manufacturing activity showed that five out of 15 sub-sectors in the LSM dipped in May. High interest rates and the depreciation of the rupee have increased the cost of raw materials further, and economic activity is expected to slightly slow down during the current financial year.

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 a 16.6pc sectoral share.

As per the PBS data, the entire automobile sector showed strong growth in May compared to the same period a year ago. Tractor production increased by 6.1pc, Jeep production increased by 113pc, and Jeep production increased by 48.8pc.

The production of buses rose by 103.7pc, and diesel engines 70.5pc. However, the production of LCVs surged by 10.9pc and trucks by 8.5pc. The production of motorcycles dipped by 6.9pc, while bicycles increased by 44.3pc.

In the non-metallic mineral sector, the production of cement output dipped by 1.5pc in May. The production of glass plates and sheets, on the other hand, increased by 173pc. The steel industry increased billet and ingot production by 47.2pc.

In May, the production of phosphate fertilisers rose 3.6pc and nitrogen fertilisers dipped 2.5pc, respectively.

In pharmaceuticals, the output of tablets fell by 9.3pc, injections by 45.1pc and capsules by 48.3pc. However, the output of syrups is up by 190.6pc and ointments by 8.8pc, respectively.

On the other hand, cooking oil production posted a negative growth of 1.3pc and vegetable ghee 8.5pc in May from a year ago. However, tea blended fell by 34.7pc in May from a year ago, while wheat and grain milling output declined by 2.5pc.

The output of a few petroleum products, including petrol and diesel, posted a positive growth in May.

Published in Dawn, July 19th, 2022