ISLAMABAD: The large-scale manufacturing ( LSM ) industry shrank 10.63 percent through March from a year back, the Pakistan Bureau of Statistics ( PBS ) recorded on Wednesday. It was attributed to the dismal overall performance of food and beverages, fertilizers, petroleum products, and automobiles sending fears of large-scale layoffs in the manufacturing segment.
On a year-on-year basis, the LSM dipped by 2.93pc through the 1st nine months ( July-March ) of this fiscal yr —so far in negative and far behind the target of the 8.1pc set for 2018-19. Sector-wise, manufacturing information of 11 products from Oil Companies Advisory Committee registered a negative growth of 9.65pc whereas 36 items received from the Ministry of Industries and Manufacturing and 65 items by provincial bureaus of statistics declined by 11.90pc and 7.39pc, respectively.
The industrialized industry is aimed to grow by 7.6pc during 2018-19. The production sector is projected to expand by 7.8pc with LSM growth rate of 8.1pc, small-scale and household production 8.2pc, development 10pc and electrical power generation and distribution and gas distribution by 7.5 pc. The performance shows that the overall economy will reduce further following the negative growth in the LSM in the 1st nine months of the present fiscal yr. The govt has recently projected that the economy will grow by 3.3pc in the year 2018-19.
The industrialized industry was expected to get an increase from the improved power supply, public sector expenditure and the mega-initiatives under the China-Pakistan Economic Corridor to build infrastructure, power resources, roads, railways, and bridges. LSM constitutes 80pc of development and 10.7pc of the overall GDP. In comparison, small-scale making accounts for just 1.8pc of GDP and 13.7pc in production.
Pharmaceutical — dipped 6.14pc year-on-year through March 2019 — declined mainly due to a 2.16pc decrease in the manufacturing of syrups, capsules 56.4pc. However, tablets and injections went up by 6.35pc, and 3.83pc, respectively. The govt has recently permitted a boost in the cost of pharmaceuticals. However, the govt has reversed the decision following criticisms from all quarters adding in opposition parties.
In the non-metallic mineral products, cement dipped 11.93pc in March over the same month a year ago. The sugar manufacturer has dipped by 26 .49pc during the month under review. On a year-on-year basis, almost all vehicles in the auto segment submitted decline in March. Tractor production went down by 20.03pc, light commercial vehicles 34 .47pc, trucks 57.67pc, buses 30.88pc, jeeps and cars 10 .02pc and motorcycles 23.32pc during the period under review. The decline in the chemical sector was mainly driven by a dip in the production of paints and varnishes by 2.22pc; whereas caustic soda production went down by 18.23pc. Moreover, the production of vegetable ghee, cooking oil and tea blended dipped by 3.57pc, 10.75pc, and 17.57pc, respectively.