ISLAMABAD: Large-scale manufacturing (LSM) staged a partial recovery in November after a contraction in the preceding month, data released by the Pakistan Bureau of Statistics showed on Monday.
The LSM posted a paltry growth of 1.59 per cent in November on a year-on-year basis. The main contributors to positive growth are food, beverages, textiles, leather products, petroleum products and chemicals.
The LSM turned positive in August 2023 after 14 months of contraction and extended the growth in September as well.
The removal of import restrictions, clearance of outstanding letters of credit and improved dollar liquidity following improvement in the SBP forex reserves are considered to help in a pick-up in economic activity.
The LSM remained positive in Novem-ber as 12 out of 22 sectors picked up positive growth including food (1.80pc), beverages (19.09pc), wearing apparel (27.79 pc), leather products (3.55pc), wood products (31.82pc), petroleum products (2.77pc), fertilizer (21.37pc), pharmaceuticals (23.62pc), machinery and equipment (99.46pc), textile (0.41pc).
The LSM shrank 0.80pc in the first five months of 2023-24.
In the textile and clothing sector, negative growth was observed in yarn 2.80pc and cloth 3.89pc. However, a massive growth of 27.79pc was recorded in the garment sector in November from a year ago.
In the food group, wheat and rice production declined by 2.76pc in November over the last year. However, the production of cooking oil rose 25.31pc, and vegetable ghee 0.19pc during the month.
Petroleum products posted a growth of 2.77pc in November, mainly because of an increase in the production of petrol (7.63pc) and high-speed diesel (5.19pc), LPG (4.35pc) and kerosene (44pc). And almost all other petroleum products recorded a paltry growth during the month under review.
In November, there was a notable decline in iron and steel production, which experienced a decrease of 0.63pc and electrical equipment 7.84pc.
The production of fertilisers experienced a surge of 21.37pc, while the production of rubber items witnessed a negative growth of 4.49pc. The production of pharmaceutical products experienced a significant surge, with an impressive increase of 23.62pc.
The auto sector also saw a 66.07pc slump in November as the production of almost all kinds of vehicles went down.
According to the finance ministry, in July-November FY24, the performance of the auto industry remained subdued due to massive increases in input prices and tightened auto finance. Car production and sales decreased by 58.1pc and 53.3pc, while trucks & buses production and sales decreased by 56.1pc and 47.2pc. However, the tractor’s production and sale increased by 60.7pc and 98.2pc.
The sale of petroleum products slumped by 16pc to 6.45m tonnes against 7.70m tonnes in the same period last year. In November 2023, oil sales recorded at 1.37 mn tonnes, down 11 pc YoY.
Cement dispatches in November 2023 were 3.924m tonnes (declined by 2.1pc) against 4.009m tonnes dispatched during the same month last year. During July-November FY24, total cement sales (domestic and exports) were 19.816m tonnes, 10.8pc higher than 17.883m tonnes in the corresponding period last year.
Domestic dispatches during this period were 16.688m tonnes against 16.354m tonnes during the same period last year, showing an increase of 2.04pc. Export dispatches were also 104.6pc higher as the volumes increased to 3.129m tonnes during the first five months of the current fiscal year compared to 1.529m tonnes exported during the same period of the last fiscal year.
Published in Dawn, January 16th, 2024