Pakistan’s large-scale industry sees modest growth in February 

Pakistan’s large-scale manufacturing Industries (LSMI) sector edged up by 0.06% in February, marking its third consecutive monthly increase, according to the latest data released by the Pakistan Bureau of Statistics (PBS). 

The LSM index reached 126.01 points in February, slightly up from 125.93 points in February of the previous year. However, this figure was 4.14% lower than January 2024’s index of 131.45 points.

Since August 2023, the annual trend in the LSM index has mostly been positive, reversing a previous 13-month decline. 

From July to February, the LSM index decreased by 0.51% year-on-year, standing at 117.99 points, reflecting a downward trend for the 20th consecutive month since July 2022.

In the first eight months of the fiscal year, 11 out of 22 LSM sectors reported growth. These included sectors such as food, beverages, apparel, leather, wood products, coke and petroleum products, chemicals, pharmaceuticals, rubber products, machinery and equipment, and furniture.

Specific sectors showed mixed results. The textile and clothing sectors saw increases in yarn and cloth production, while the garment sector experienced an 18.74% increase in February year-on-year. 

Conversely, wheat and rice production declined, as did production in the petroleum sector, which fell by 16.85%. Iron and steel production also decreased, whereas electrical equipment, fertilizers, rubber items, pharmaceuticals, and machinery and equipment sectors saw increases.

Automobile industry performance remained weak from July to February, impacted by rising input costs and tighter financing conditions. 

Car production and sales fell by over 40%, and truck and bus production and sales also saw significant decreases. However, tractor production and sales surged by over 68%.

Petroleum product sales dropped by 13% to 10.2 million tonnes over the eight-month period, and total cement dispatches increased by 2.5% to 30.56 million tonnes.