ISLAMABAD: The large-scale manufacturing industries (LSMI) of the country has witnessed a decline of 0.9pc during the first five months of the current fiscal year as compared to the corresponding period of last year.
LSMI Quantum Index Number (QIM) was recorded at 134.27 points during July-November 2018-19 against 135.49 points during July-November 2017-18, showing a negative growth of 0.9pc, according to the data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
The highest decrease of 4,52pc was witnessed in the indices monitored by the Oil Companies Advisory Committee (OCAC), followed by 3.66pc in the products monitored by the Provincial Board of Statistics while an increase of 0.69pc was witnessed in the indices monitored by the Ministry of Industries.
On yearly basis, the industrial growth also decreased by 0.6pc in November 2018 as compared to same month of last year, whereas on monthly basis, the industrial growth decreased by 4.98pc in November 2018 when compared to growth during October 2018, the PBS data revealed.
Meanwhile, the major sectors that showed growth during July-November (2018-19) included chemicals (1.79pc), automobiles (0.17pc), fertilizers (5.87pc), leather products (2pc), paper and board (8.76pc), engineering products (19.93pc), and rubber products (4.2pc).
On the other hand, the LSM industries that witnessed negative growth included textile (0.12pc), food, beverages, and tobacco (0.38pc), coke and petroleum products (4.52pc), pharmaceutical (7.62pc), non-metallic mineral products (0.33pc), iron and steel products (6.13pc), electronics (9.46pc), and wood products (47.09pc).
Talking to this scribe, Pak Kuwait Investment Co Research AVP Adnan Sheikh said devaluation of rupee and import duties have led to price increases in the local market which has in turn affected demand, as evident by latest LSM depicting 0.9pc contraction.
He said the analysis shows a steep fall in the output of major sectors where raw materials were imported, adding that the most affected sectors included pharmaceutical, iron and steel, petroleum and electronics.
It is pertinent to mention that the provisional QIM is being computed on the basis of the latest production data of 112 items received from sources, including Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production (MoIP) and Provincial Bureaus of Statistics (PBoS). OCAC provides data of 11 items, MoIP of 36 items while PBoS proved data of remaining 65 items.