July-December LSMI up by 3.35 percent

Large Scale Manufacturing Index (LSMI) has risen by 3.35 percent in July-December 2019-20 compared to the comparable period of the year before and by 9.66 percent in December 2019 over the preceding month, as per Pakistan Bureau of Statistics (PSB).

This rise is on the back of doubling of sugar output - from 554,544 tons during the first six months of 2018-19 to 1,093,235 tons in the comparable period 2019 though disturbingly this commodity has witnessed a massive rise in its price in recent weeks. Ironically the price of sugar has risen massively in recent months - from Rs 60 per kg May-June 2019 to Rs 75 per kg in December 2019.

Sugar's weightage has been steadily rising in LSMI and was at 3.5 percent as cotton output has declined. Food and beverage total weightage is 12.4 percent. According to the PBS, Provisional Quantum Index Numbers of Large Scale Manufacturing Industries (LSMI), the LSM output on year-on-year (YoY) basis registered a growth of 9.66 percent for December 2019 as against December 2018 from 135.90 points to 149.03 points.

The PBS data revealed that LSMI also witnessed an increase of 16.40 percent on month-on-month (MoM) basis in December 2019 as compared to November 2019 from 128.04 points to 149.03 points.

According to the PBS data, during July-December 2019-2020 as against July-December 2018-2019, automobile industries growth declined by 36.40 percent, iron and steel production declined by 12.31 percent, coke and petroleum products declined by 10.33 percent, electronics by 14.08 percent, pharmaceuticals by 6.36 percent, and engineering products 1.35 percent.

The sector showing increase during the period from July-December 2019 included textile by 0.32 percent, food, beverages and tobacco by 4.33 percent, non-metallic mineral products growth jumped up by 2.90 percent, fertilizers registered a growth of 4.89 percent, leather products recorded a growth of 11.02 percent, paper and board by 7.87 percent, rubber products 1.32 percent, and wood products registered a growth of 46.46 percent.

The PBS said the provisional quantum of LSM for September 2019 with base year 2005-2006 has been developed on the basis of latest data supplied by the sources agencies such as Oil Companies Advisory Council (OCAC), Ministry of Industries and Provincial Bureau of Statistics (BOS).

The data said that during July-December 2019-2020 as compared with the same period of the last year, growth of 11 items related to Oil Companies Advisory Council (OCAC) industries witnessed a decline of 10.33 percent from 112.50 points to 100.88 points, Ministry of Industries-related 36 items registered a negative growth of 2.71 percent from 126.57 points to 123.14 points, and 65 items related to Provincial Bureau of Statistics (BOS) showed a negative growth of 3.26 percent from 136.12 points to 131.56 points.

On monthly basis, OCAC-related industries registered a reduction of 0.8.96 percent from 104.13 points to 94.80 points, Ministry of Industries-related LSM recorded a growth of 26.20 percent from 117.48 points to 148.26 points, and provincial BOS-related LSM registered a growth of 0.06 percent from 170.48 points to 170.59 points.