Large Scale Manufacturing: 18 percent growth in June-2021

August 13, 2021

401

The overall production of Large Industries increased by 15% in the fiscal year July-June FY2021 compared to July-June FY2020.

Pakistan Bureau of Statistics (PBS) released the monthly production data which showed that the Large Scale Manufacturing Index increased by 18.42% in the month of June 2021 compared to June 2020 and 4.36% on monthly basis compared to May-2021.

The breakup of LSM index shows that Large scale production in FY2021 significantly increased for Textile, Food, Beverages & Tobacco, Coke & Petroleum Products, Pharmaceuticals, Chemicals, Non-Metallic Mineral Products, Automobiles, Iron & Steel Products and Fertilizers sectors while Leather Products, Electronics and Rubber Products witnessed a significant decline in output.

The growth is a result of a recovery in economic activity and a low base given lockdown last year. The sectors which showed Growth includes:

Auto Sector posted a record growth of 88.9% in the month of June, taking Yearly growth to 51%. Likewise, Iron and Steel sector continued its run with 32.9% growth in June-2021, marking one of the best months for the industry.

While sectors depicting Decline include the following:

Electronics segment posted a growth of 10.5% in the month of June-2021 while marking a 4.4% decline in the year 2020-2021.

Going onwards, LSM index is likely to maintain its upward trajectory base don select Sectors (Autos, Cement, Iron and Steel, Chemicals, Foods) but the growth is likely to be at a subdued pace as the Economy stabilizes.