The large-scale-manufacturing (LSM) sector of Pakistan has contracted by as much as 3.78 percent since May 2018 as the fertiliser, leather, pharmaceutical, and chemical sectors all gave a poor showing in the last year.
Data released by the Pakistan Bureau of Statistics (PBS) showed that the LSM dipped by 3.5pc during the first 11 months (July-May) of this fiscal year — falling far behind the 8.1pc target set for the government for FY2018-19. The dip has raised fears once again regarding massive layoffs that the sector might have to undertake to make up for this blow.
Sector-wise, production data of 11 items from Oil Companies Advisory Committee registered a negative growth of 1.05pc whereas 36 items received from the Ministry of Industries and Production and 65 items by Provincial Bureaus of Statistics declined by 2.04pc and 0.7pc respectively.
Despite tall claims by the government that the economy would pick up and eventually land on a stable growth rate of 3.3 percent, the dismal performance of the LSM sector indicates quite the opposite, and that the economy will probably slow down even more.
