Karachi, November 15, 2023 – Pakistan large-scale manufacturing sector experienced a notable growth of 1% in September 2023 on a year-on-year (YoY) basis, as per official statistics released by the Pakistan Bureau of Statistics on Wednesday.
The Large Scale Manufacturing Index (LSMI) for September 2023 stood at 112.9, compared to 111.7 in the same month last year. However, on a month-on-month (MoM) basis, LSMI recorded a decline of 3.6%.
For the first quarter of fiscal year 2023-24 (July to September), the Large Scale Manufacturing sector achieved positive growth of 0.7% YoY. Analysts at Arif Habib Limited emphasized the significance of easing import restrictions, attributing this development to the improved availability of crucial production inputs. They anticipate that any relaxation in monetary policy in the future could further boost the growth potential of the LSMI, reinforcing its upward trajectory.
The sector-wise analysis for September 2023 indicated positive growth in several key segments:
• Food: +1.4% YoY
• Chemicals: +1.7% YoY
• Coke & Petroleum Products: +17.0% YoY
• Wearing Apparel: +47.9% YoY
• Electrical Equipment: +3.9% YoY
• Fabricated Metal: +12.7% YoY
• Other Transport Equipment: +3.2% YoY
• Pharmaceuticals: +29.5% YoY
• Beverages: +10.1% YoY
• Leather Products: +5.8% YoY
• Machinery and Equipment: +148.2% YoY
Conversely, certain sectors experienced a decline during the same period:
• Textile: -21.8% YoY
• Iron & Steel Products: -1.7% YoY
• Automobiles: -22.9% YoY
• Tobacco: -57.0% YoY
• Paper & Board: -6.0% YoY
• Furniture: -58.6% YoY
• Non-Metallic Mineral Products: -3.5% YoY
• Rubber Products: -2.1% YoY
• Wood Products: -8.7% YoY
• Computer, Electronics, and Optical Products: -22.6% YoY
• Other Manufacturing: -1.6% YoY
Analysts believe that the variations in these sectors highlight the diverse dynamics within the large-scale manufacturing landscape, reflecting the impact of both global and domestic factors. The positive growth in certain industries signifies a positive trajectory for the overall manufacturing sector, and experts anticipate continued attention to policies that support sustained growth and economic development.
