The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for May 2024, using the base year 2015-16, indicate a modest increase in production.
According to the latest data released by the Pakistan Bureau of Statistics (PBS), the Quantum Index of Manufacturing (QIM) for May 2024 stands at 113.90, marking a 7.33% YoY increase compared to May 2023 and a 7.52% MoM increase from April 2024.
Overall LSMI sector has shown a growth of 0.99%, with QIM at 116.48, during July- May 2023-24 when compared with the same period of last year. This growth rate marks a continuation of the challenging conditions faced by the big industry, with the LSM index showing a cumulative negative change for the 20th consecutive month since July 2022.
The main contributors towards overall growth of 0.99% are Food (0.29), Tobacco (-0.46), Textile (-1.07) Garments (1.33), Non Metallic Mineral Products (-0.30), Petroleum Products (0.54), Chemicals (0.45), Pharmaceuticals (0.87), Iron & Steel Products (-0.18), Electrical Equipment (-0.27), Automobiles (-0.73) and Furniture (0.51).
PBS data shows that twelve out of twenty-two sectors reported negative growth during the first eleven months (July to May) of FY 2023-24, notable declines were seen in chemicals, beverages, tobacco, textiles, paper and board, non-metallic mineral products, iron and steel products, fabricated metals, computers, electronics, and optical products.
Conversely, sectors such as food, wearing apparel, coke and petroleum products, chemicals, fertilizers, pharmaceuticals, machinery, and equipment, as well as furniture, showed positive growth.
In particular, the garment sector exhibited a surge of 40.67% in May 2024 compared to the same month in the previous year. Additionally, yarn and cloth in the textile and clothing sector saw increases of 5.90% and 0.95%, respectively.
However, some sectors struggled significantly, with production in cooking oil and vegetable ghee declining by 0.21% and 7.25%, respectively in May 2024. The production of fertilizers and rubber items also fell by 0.75% and 14.74%, respectively, while pharmaceutical products and machinery and equipment manufacturing saw reductions of 2.31% and 13.07%.
The overall performance of LSM has been adversely affected by a combination of domestic challenges, global economic disruptions, and natural disasters such as floods, impacting the productivity and growth potential of Pakistan’s manufacturing sector.
