Large-scale manufacturing (LSM) only registered a growth of 3.48 pc YoY in July-January, lagging behind the target of 5.9pc set for the current financial year.
The growth was 4.5pc during the same period in the previous fiscal year. The most important sections of LSM showed very poor performance, a State Bank of Pakistan report said on Friday,
Marginal growth of 0.29pc was registered during the seven-month period compared to 0.92pc a year ago regardless that the textile sector received bank loans worth Rs90 billion last year,
There was 0.67pc increase in the production of coke and petroleum products in current fiscal year in comparison to the 4.85% registered in the corresponding period last year.
Pharmaceutical industry experienced sound growth as it increased 7.57pc compared to 7.3pc in the same period last year. Chemicals production declined 2.13pc compared to a growth of 11.63pc.
The automobile sector’s growth shot down to 6.91pc from 31.28pc a year earlier. The growth in cars and jeeps witnessed a negative growth of 1.9pc in July-January 2016-17 in comparison to positive growth of 43pc a year ago.
Motorcycles’ production spiked up by 20pc, buses 26pc, trucks 54pc and tractors 79pc.
Food, beverages and tobacco, the second-largest sector after textiles in the list of LSM, registered growth of 4.79pc compared to 1.84pc in the same period of the last fiscal year. Sugar segment recorded the highest growth whose production rose 22pc. Soft drinks production also recorded sharp growth of 18.5pc.
In spite of the closure of Pakistan Steel Mills, the largest producer of iron and steel products, the expansion in this sector was 17.5pc during the current period under review compared to a decline of 8.4pc a year earlier.
Iron and steel products demand has spiked up due to higher construction activities and infrastructure development under the China-Pakistan Economic Corridor.
Fertilisers’ production grew by a meagre 1.18pc compared to 14.69pc in the same period of last financial year. Leather products witnessed a negative growth of 17pc compared to a positive growth of 11pc. The leather industry faces mounting challenges in terms of goods smuggled from China which are cheaper and easily acquirable across the country.
