Pakistan’s Large-scale production in the country saw an increase of 7.65% in september 2020 over the same month last year.
The September gain was the third consecutive increase in LSM production since the revival began in July. Overall, Large Scale Manufacturing (LSM) grew 4.81% year over year in the first quarter (July-September) of fiscal 2021 compared to same period of last fiscal year.
Compared to August 2020, industrial production for the September month as a whole increased by more than 10%.
The recovery in LSM production, which came after months of lower manufacturing activities due to Covid-19, is mainly due to positive sentiment in the construction, sugar, automotive and pharmaceutical sectors, according to data released by Statistics Pakistan on Thursday.
The reduction in interest rates and Cost for raw materials is expected to further stimulate economic activity in the current fiscal year.
Monthly manufacturing data showed that 9 out of 15 LSM subsectors rose in September.
According to the data, production of 11 items under the Oil Companies Advisory Committee fell 2.84% year on year in September. 36 segments belonging to the Ministry of Industry and Production grew by 7.92%. While 65 segments, according to national statistical offices, increased by 9.34%.
As per estimates, LSM accounts for 80% of the country’s total production and accounts for approximately 10.7% of the Gross national product. By comparison, small industry accounts for only 1.8 percent of GDP and 13.7 percent of the other sectors.
PBS data showed that the automotive sector showed year-on-year growth in September 2020. The sector increased production of tractors by 13.42 percent, trucks by 3 percent, buses by 34.29 percent, jeeps and cars by 40.14 percent and motorcycles by 24.3 percent.
Similarly, Cement production increased by 21.32% in September 2020 mainly due to greater demand following the start of construction and exports from the country. The production of paints and varnishes were up 42.82%.
Meanwhile, cigarettes production soared 7.71%YoY in September. In pharmaceuticals, the output of tablets grew 18.51%, syrups 5.88%, injections 53.84%, capsules 51.04% and ointments 2.14%. The production of tea, cooking oil, and vegetable ghee production dipped 13.27%, 2.98% and 6.6%, respectively.
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