ISLAMABAD: The government has rebased Quantum Index of Large Scale Manufacturing Industries (LSMI) from 2005-06 to 2015-16 with increasing the total 112 items with cumulative weight of 70.3 percent for computation to 123 items having total weight of 78.4 percent, where, the Ministry of Industries and Production weight has been decreased from 49.556 percent in the QIM 2005-06 to 40.54 percent in QIM 2015-16.
The Pakistan Bureau of Statistics (PBS) has released a report on the rebasing of Quantum Index of Large Scale Manufacturing Industries (QIM) from 2005-06 to 2015-16, which stated that the weights presently used for the QIM were derived from the Census of Manufacturing Industries (CMI) 2005-2006. Total 112 items with cumulative weight of 70.3 percent are being used for computation of QIM.
The production data is collected from Oil Companies Advisory Council (OCAC), Ministry of Industries and Production (MOIP) and Provincial Bureaus of Statistics (BOS).
Moreover, to keep QIM more reliable, update and to overcome the challenges, the current QIM is rebased on the basis of results of CMI 2015-16. The rebased QIM has been computed with 123 items having total weight of 78.4 percent derived from the CMI 2015-16 with all existing data sources with addition of the PBS internal data source.
It further stated that new weights have been derived at two stages, the weight at industry level have been derived on the basis of gross value added (GVA) of Large Scale Manufacturing Industries (LSMI) at the basic prices.
The total GVA for the LSMI is taken as 100 and percentage contribution of each industry has been considered as the weight of that industry.
Jul-Oct LSMI output up 3.56pc YoY
At the second stage, the weights have been derived at product level on the following lines: a) In case, there was only one item to be selected from a manufacturing activity, the total weight of that activity has been assigned to the selected item. b) If more than one items have been selected from a manufacturing activity, then weights of the activity have been distributed among the selected items according to relative production value of the selected items in that activity.
Items included in the rebased QIM are bakery products and chocolate and sugar confectionery, rice milling, mineral waters, preserved milk, towels, garments, corrugated paper/ paperboard containers, pesticides, insulated wire and cable, parts and accessories for motor vehicles, furniture and footballs.
The Pakistan Bureau of Statistics (PBS), being prime statistical office, is mandated to collect, compile, and disseminate reliable and timely data on socio-economic indicators of the country.
Manufacturing, one of the main components of industry sector, bears a significant importance by contributing 13.4 percent to the GDP during the financial year 2015-16. The Large Scale Manufacturing (LSM) sector, being major contributor in manufacturing sector, plays vital role in the national economy, which contributes 10.7 percent to the GDP.
Census of Manufacturing Industries (CMI) is conducted with aim to measure the structural changes in Large Scale Manufacturing Industries and provides data on Fixed Assets, Inventories, Employment and Employment Cost, Industrial Taxes and Census & Gross Value Added etc. It also provides weights for the Quantum Index of Manufacturing Industries which is used as a proxy indicator for LSM to measure growth on monthly basis.
Quantum Index of Large Scale Manufacturing Industries (QIM) measures the changes in production over time on monthly as well as cumulative basis Quantum Index of Large Scale Manufacturing Industries (QIM) measures the changes in production over time on monthly as well as cumulative basis. The weights presently used for the QIM were derived from the Census of Manufacturing Industries (CMI) 2005-2006.
A panel on industrial statistics constituted for the purpose of conducting Census of Manufacturing Industries (CMI) 2015-16 consisting of all stakeholders they, inter alia approved CMI results and thereafter weights are developed/derived for rebased QIM. The rebased QIM has been computed with 123 items having total weight of 78.4 percent. New weights have been derived at two stages, the weight at industry level have been derived on the basis of gross value added (GVA) of Large Scale Manufacturing Industries (LSMI) at the basic prices.
Copyright Business Recorder, 2022
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