ISLAMABAD – Pakistan’s Large Scale Manufacturing (LSM) output increased bynearly 10% during December 2019 according to the Pakistan Bureau ofStatistics (PBS).
The LSM output increased 9.66% in December over the same month of the lastyear i.e. December 2018 and 16.4% when compared with November 2019,breaking the cycle of continuous decline according to PBS.
The latest monthly increase was led by a 41.57% growth in food andbeverages, 33.4% in paper and board and 16.1% in leather products. Thisshows that all the key economic sectors appear to be coming back on track.
Sector-wise, production of 11 items under the Oil Companies AdvisoryCommittee edged up by 1.23%, 36 items under the Ministry of Industries andProduction went up by 10.69% while 65 items reported by the ProvincialBureaus of Statistics inched higher 8.6%.
Ossama Rizvi, an economic and geopolitical analyst stated, ”This is indeeda great news which will be send a positive and promising signal to theinvestors around the world and hopefully it can bring in FDI instead of FPI– as we are in dire need of the former. Pakistan’s currency is stabilizing– a good sign. A further adjustment might help LSM further. The need forefficiency in energy usage and an affordable price are the key points towork on.”
However, during the first half of the fiscal year, the output shrank by3.4% in July, from almost 6% in the first five months of the fiscal year,missing the annual target of 8.1%.
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The extended downward trajectory of LSM contributed to the overall economicslowdown, as the State Bank of Pakistan estimated the economy to grow by3.5% in 2019-20. All three data collection authorities registered adecrease in production in the first half over the preceding fiscal year.
Oil Companies Advisory Council, logging outputs of 11 oil and petroleumproducts, measured a fall of 0.66%. Ministry of industries, measuringoutput trend of 36 items, recorded a 1.78% decline in production.Provincial bureau of statistics, overseeing the production of 65 products,logged 0.92% negative growth.
The production in Jul-Dec 2019-20 as compared to Jul-Dec 2018-19 hasincreased in Food, Beverages & Tobacco, Non-Metallic Mineral Products,Fertilizers, Paper & Board and Leather products while it has significantlydecreased in Coke & Petroleum Products, Pharmaceuticals, Automobiles, Iron& Steel Products, and Electronics.
