Amir Khan

The Provincial Quantum Index Numbers (QIM) for Large Scale Manufacturing Industries (LSMI) in June 2024 offer a detailed view of the sector's performance. According to data from the Pakistan Bureau of Statistics (PBS), the LSM sector grew by 0.92% in the fiscal year 2023-24 (FY24) compared to FY23.

This 0.92% growth was largely driven by sectors like food (0.30%), garments (1.19%), petroleum products (0.63%), chemicals (0.41%), and pharmaceuticals (0.80%). However, sectors such as tobacco (-0.42%), textiles (-0.93%), non-metallic mineral products (-0.36%), iron and steel products (-0.22%), electrical equipment (-0.31%), automobiles (-0.62%), and furniture (0.37%) contributed less positively. Production increased in FY24 compared to FY23 in areas like food, wearing apparel, coke and petroleum products, chemicals, fertilizers, pharmaceuticals, machinery and equipment, and furniture. However, there were declines in tobacco, textiles, paper and board, non-metallic mineral products, iron and steel products, electrical equipment, automobiles, and other transport equipment.

Compared to the previous year, significant growth was seen in sectors like food (1.73%), wearing apparel (8.24%), leather products (5.66%), wood products (11.79%), coke and petroleum products (9.81%), chemicals (5.26%), fertilizers (11.58%), pharmaceuticals (15.72%), machinery and equipment (45.52%), other manufacturing (7.60%), and furniture (14.96%). On the other hand, declines were noted in beverages (-2.10%), tobacco (-23.01%), textiles (-5.23%), paper and board (-0.43%), non-metallic mineral products (-5.31%), iron and steel products (-4.42%), fabricated metal (-7.79%), computer, electronics, and optical products (-12.44%), electrical equipment (-9.47%), automobiles (-25.03%), and other transport equipment (-4.02%). Petroleum products saw a 9.81% increase, with the index rising to 95.30 for July-June 2023-24, up from 86.79 in July-June 2022-23.

However, production of these products decreased by 3.35% in June 2024 compared to May 2024, though it increased by 28.30% compared to June 2023. High-speed diesel output grew by 14.71%, reaching 5.339 billion litres in FY24, compared to 4.655 billion litres in FY23. Furnace oil production also rose by 20.19% to 2.633 billion litres in FY24, up from 2.191 billion litres in FY23. Conversely, jet fuel oil saw a 7.90% decline, with output at 799 million litres in FY24, down from 867 million litres in FY23. Cement production fell by 4.54% to 39.566 million tonnes in FY24, down from 41.448 million tonnes in FY23. This data presents a mixed picture for LSMI. While sectors like petroleum products and garments showed growth, others like textiles and automobiles faced challenges. The overall 0.92% growth rate for FY24 indicates modest progress but underscores the need for targeted strategies to support underperforming sectors.

Credit: INP-WealthPk