Home Views & Opinions LSMI production up 8.2pc

LSMI production up 8.2pc

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Major manufacturing sectors registered improved growth. The overall output of the Large Scale Manufacturing Industries increased by 8.16 percent in the first half (July-December) of 2020-21 against July-December 2019-20. The Large Scale Manufacturing Industries output accelerated by 11.40 percent for December, 2020 compared to December, 2019.The LSM data after collecting it from the Provincial Bureau of Statistics, the Oil Companies Advisory Council OCAC and the Ministry of Industries depicted that the OCAC registered month-on-month growth of 11.52 percent in December 2020 in contrast previous month. The data demonstrated that the Ministry of Industry-linked sectors accomplished an increase of 20.04 percent in December 2020 compared November 2020 on month on month basis, while Year-on-Year basis, it recorded a growth of 13.62 percent in December 2020 as compared with similar month of 2019.The production in July-December 2020-21 as compared to July-December 2019-20 has accelerated in textile, food, beverages and tobacco, coke and petroleum products, pharmaceuticals, chemicals, non-metallic mineral products, automobiles, fertilizers, paper and board and rubber products, while it decreased in iron and steel products, electronics, leather products, engineering products and wood products.
Textile, the highest active contributing sector to the overall large industry output, expanded by 2.61 percent, food, beverages and tobacco 20.22 percent, coke and petroleum products 5.01 percent, pharmaceuticals 13.11 percent, chemicals 10.68 percent, automobiles 11.23 percent, non-metallic mineral products 20.07 percent, paper and board 10.42 percent, fertilizers 7.40 percent, and rubber products 2.02 percent during July-December 2020-21 compared to the same period last year. The sectors witnessing diminishing during July-December 2020-21 against July-December 2019-20 comprised iron and steel products output declined by 1.16 percent, electronics 20.87 percent, engineering products 31.36, leather products 42.65 percent, and wood products 60.13 percent.
The petroleum products achieved an increase of 5.01 percent as its output went up from 6.829 billion litres during July-December 2019-20 to 7.17 billion litres in July-December 2020-21, while on year on year basis petroleum sector shown growth of 23.91 percent as its output increased from 1.069 billion litres in December 2019 to 1.325 billion litres in December 2020.High-speed diesel achieved 9.74 percent growth as its output stayed 2.809 billion litres during July-December 2020-21 compared to 2.55 billion litres during the same period of past year. The LPG witnessed 8.17 percent growth in December 2020 and remained 82.66 million litres compared to 76.41 million litres in December 2019 .Cement witnessed 20.83 percent growth during July-December 2020-21 and remained 24.575 million tonnes compared to 20.338 million tonnes during the same period of last year.
Tractors showed 39.39 percent growth during July-December 2020-21 and stayed 23,237 numbers against 16,671 numbers during the similar period of last year. Motorcycles achieved 17.66 percent growth during July-December 2020-21 and stayed 1.24 million numbers in contrast to 1.05 million during the same period of last year. Large-scale manufacturing rose by 11.4 per cent in December which was the largest monthly expansion in the last decade. The double-digit growth continued in December on the consequent of higher automobile and cement production, which displays revival of industrialization. In November, LSM grew by 14.5 percent on a year-on-year basis.
During the first half period July December period 2020-21, LSM accelerated grew by 8.16 percent. Sturdy growth direction of LSM has continued in December. The sharp economic recovery in Pakistan is mainly led by industries. Pakistan is successfully going toward industrialization that began in 2008. Capacity improvement new investments and rebuilding are already in function. Double-digit growth comes on the support of higher automobile and cement production.
Another double-digit growth month for LSM in the industrial sector shows sustained growth. Given that July, LSM has improved after suffering months of a downturn due to Covid-19 particularly in the construction, textile, food, chemicals, and non-metallic mineral products, automobile and pharmaceutical sectors. The increase during the first half of 2021 depicts an improvement in economic activities. The manufacturing activity showed that 10 out of 15 sub-sectors in LSM grew during the month under review. Low-interest rates and reduction in duties on raw materials are expected to further motivate economic activities in the present fiscal year. Sector-wise, production of about 11 items under the Oil Companies Advisory Committee was raised by 23.91 percent year-on-year during December. Sub-sectors excluding trucks and buses within the automobile sector registered impressive growth in December from a year ago. Production of tractors rose by 437.26 percent, jeep and cars 44.26percent, LCVs 237.18percent, and motorcycles 23.66 percept during the month under review. The production of trucks dropped 13.48percent and buses 12.73percent respectively. The cement output also grew 18.56 percent during the month under analysis on the back of greater demand following the start of construction activities and increase in exports from the country. The production of paints and varnishes was risen by86.67 percent. Sugar production rose by 210 percent in December from a year ago owing to the beginning of the sugar crushing season. In pharmaceuticals, the output of syrups rose by 29.99 percent, injection 25.81percent, and capsules 35.84percent. The output of tablets dropped 3.29percent and ointments 9.83 percent, respectively. While vegetable ghee, and cooking oil production diminished by 2.39 percent and 7.03percent, respectively. Nevertheless the production of tea, wheat and grain milling output increased 6.39 percent and 62.67 percent, accordingly.