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ISLAMABAD: Large-scale manufacturing (LSM) grew by 4.67 per cent in July compared to the same month a year ago, the Pakistan Bureau of Statistics said on Tuesday.
“This is a welcome development for GDP growth of this fiscal year. The provisional LSM growth during the previous fiscal year was estimated at 3.32pc,” Finance Minister Ishaq Dar said in a meeting on LSM.
He was satisfied with the positive trend in the LSM growth. “The government is doing all it could to facilitate every sector of the economy ... and has its eyes set on sustainable and inclusive growth,” he said.
The growth in the LSM sector, which accounts for 70pc of industrial production, normally remains hampered by a broad range of issues including weak exports of cotton yarn and gas shortage in a number of industries. Other reasons behind slower growth include closure of a large chip board plant and substitution of domestic production of edible oil with imports.
Major sectors that contributed to the LSM growth in July included automobiles (52.5pc growth), fertilisers (19.1pc), chemicals (15.2pc) and leather products (10.8pc).
In the first month of this fiscal year, the stability was seen in LSM growth as a number of groups performed well as compared to last year. Iron and steel products showed improved performance on account of government bailout package. Likewise, the automobile sector flourished due to reduction in sales tax on tractors as well as introduction of new models by auto-makers.
The growth in iron and steel products came on the back of a 13.75pc rise in the production of billets/ingots and 42pc in coke. The overall growth in steel production remained strong on account of capacity expansion.
In the auto sector, trucks production rose by 49.5pc, tractors by 32pc, buses 38pc, cars and jeeps 83.5pc and LCVs (light commercial vehicles) by 144pc. Production of motorcycles increased by 12.8pc during the month under review.
Tractors production also rose after a cut in general sales tax (GST) from 16pc to 10pc in the latest budget. The demand for commercial vehicles increased on account of Punjab government’s Apna Rozgar Scheme which aims at distributing 50,000 vehicles among jobless youth.
In leather products, the growth was mainly because of footwear products (13.68pc). In electronics products, the growth in refrigerators was 1.76pc, deep freezers 16.75pc, electric bulb 6.36pc, and bicycles 17.54pc.
In pharmaceuticals group, injections, capsules and tablets were the main contributors which managed to grow by 13.55pc, 11.87pc and 5.73pc, respectively. The growth in pharmaceuticals industry is heavily dependent on import of raw materials due to non-availability of domestic inputs. Moreover, no local pharmaceutical company has a manufacturing plant approved by the US Food and Drug Administration (FDA) which is a prerequisite for pharmaceutical exports to most countries.
In non-metallic mineral products, cement grew by 5.05pc in July. Petroleum products growth came mainly on the back of 28.59pc rise in production of kerosene, high speed diesel 3.71pc, diesel 104pc, lubricants 12.79pc, petroleum products 13.25pc and solvent naphtha 3.96pc.
In the food and beverages and tobacco group, ghee production rose by 1.18pc year-on-year in July. The production of cooking oil increased by 3.4pc and of tea by 11.14pc.
Published in Dawn, September 23rd , 2015
LSM growth rises to 4.7pc in July - Newspaper - DAWN.COM
“This is a welcome development for GDP growth of this fiscal year. The provisional LSM growth during the previous fiscal year was estimated at 3.32pc,” Finance Minister Ishaq Dar said in a meeting on LSM.
He was satisfied with the positive trend in the LSM growth. “The government is doing all it could to facilitate every sector of the economy ... and has its eyes set on sustainable and inclusive growth,” he said.
The growth in the LSM sector, which accounts for 70pc of industrial production, normally remains hampered by a broad range of issues including weak exports of cotton yarn and gas shortage in a number of industries. Other reasons behind slower growth include closure of a large chip board plant and substitution of domestic production of edible oil with imports.
Major sectors that contributed to the LSM growth in July included automobiles (52.5pc growth), fertilisers (19.1pc), chemicals (15.2pc) and leather products (10.8pc).
In the first month of this fiscal year, the stability was seen in LSM growth as a number of groups performed well as compared to last year. Iron and steel products showed improved performance on account of government bailout package. Likewise, the automobile sector flourished due to reduction in sales tax on tractors as well as introduction of new models by auto-makers.
The growth in iron and steel products came on the back of a 13.75pc rise in the production of billets/ingots and 42pc in coke. The overall growth in steel production remained strong on account of capacity expansion.
In the auto sector, trucks production rose by 49.5pc, tractors by 32pc, buses 38pc, cars and jeeps 83.5pc and LCVs (light commercial vehicles) by 144pc. Production of motorcycles increased by 12.8pc during the month under review.
Tractors production also rose after a cut in general sales tax (GST) from 16pc to 10pc in the latest budget. The demand for commercial vehicles increased on account of Punjab government’s Apna Rozgar Scheme which aims at distributing 50,000 vehicles among jobless youth.
In leather products, the growth was mainly because of footwear products (13.68pc). In electronics products, the growth in refrigerators was 1.76pc, deep freezers 16.75pc, electric bulb 6.36pc, and bicycles 17.54pc.
In pharmaceuticals group, injections, capsules and tablets were the main contributors which managed to grow by 13.55pc, 11.87pc and 5.73pc, respectively. The growth in pharmaceuticals industry is heavily dependent on import of raw materials due to non-availability of domestic inputs. Moreover, no local pharmaceutical company has a manufacturing plant approved by the US Food and Drug Administration (FDA) which is a prerequisite for pharmaceutical exports to most countries.
In non-metallic mineral products, cement grew by 5.05pc in July. Petroleum products growth came mainly on the back of 28.59pc rise in production of kerosene, high speed diesel 3.71pc, diesel 104pc, lubricants 12.79pc, petroleum products 13.25pc and solvent naphtha 3.96pc.
In the food and beverages and tobacco group, ghee production rose by 1.18pc year-on-year in July. The production of cooking oil increased by 3.4pc and of tea by 11.14pc.
Published in Dawn, September 23rd , 2015
LSM growth rises to 4.7pc in July - Newspaper - DAWN.COM
