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Pakistan

Economic distress: Pakistan’s large-scale manufacturing down 25% YoY in March

  • Main contributors towards overall decline are food, tobacco, textile, petroleum products, cement, pharmaceuticals, and automobiles
Published May 15, 2023

The output of Large Scale Manufacturing Industries (LSMI) witnessed a decline of 24.99% year-on-year in March 2023, the largest drop since May 2020 (during the pandemic), data released by the Pakistan Bureau of Statistics (PBS) showed on Monday.

According to the provisional Quantum Index numbers (QIM), the LSMI output declined by 9.09% in March 2023 when compared with February 2023.

Jul-Feb LSMI output declines 5.56pc YoY

During the first nine months (July-March) of 2022-23, the LSMI output decreased by 8.11% when compared with the same period of last year, says PBS.

The LSMI Quantum Index Number (QIM) was estimated for July-March, 2022-23 at 116.57, while it was estimated for March 2023 at 115.31.

The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for March 2023 with base year 2015-16 have been developed on the basis of latest data supplied by the source agencies, i.e., OCAC, Ministry of Industries and Production, Ministry of Commerce and Provincial Bureau of Statistics (BoS).

The LSM data released by the PBS with base year 2015-16 showed that the main contributors towards overall decline of -8.11% are, food (-1.62), tobacco (-0.57), textile (-3.16) garments (2.94), petroleum products (-0.68), cement (-0.85), pharmaceuticals (-1.30), and automobiles (-1.85).

Meanwhile, production in July-March 2022-23 as compared to July-March 2021-22 has increased in wearing apparel, furniture and other manufacturing (football) while it decreased in food, tobacco, textile, coke & petroleum products, pharmaceuticals, chemicals, non-metallic mineral products, machinery and equipment, automobiles and other transport equipment.

The poor performance in the industrial sector reflects the overall economic slowdown across various sectors in the ongoing fiscal year. The inability of the industries to secure Letters of Credit in the wake of government’s recent measures due to dollar shortage has dented production.

The government remains engaged in trying to convince the International Monetary Fund (IMF) to revive the stalled Extended Fund Facility (EFF) programme, which if approved by its board would release a funding tranche of over $1 billion.

However, the programme has been stalled at the ninth review since November last year.

The IMF has already revised downward the GDP growth rate projection for Pakistan from 2% to 0.5% for the current fiscal year, ie, 2023.

Provisional figures for this fiscal year’s performance are scheduled to be released on June 8, a day before the federal budget announcement.

Comments

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Tulukan Mairandi May 15, 2023 05:07pm
Whole country is on the decline. A total failed state.
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TimeToMovveOn May 15, 2023 07:32pm
This country has not achieved anything since independence economically or militarily. In fact lost half it area (Bangladesh), lost all wars with India, failed its citizens economically but imagines itself as a human rights champion of the world.
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Awami May 15, 2023 08:28pm
@Tulukan Mairandi, Presently all world including USA , UK etc are also going through same same conditions. All countries will restart economies slowly, it is a normal progression.
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TimeToMovveOn May 15, 2023 08:34pm
@Awami, Really? How is India registering 6% grown while you are registering 0.5% then?
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Sanjoy Das May 16, 2023 02:19am
Kashmir Banega Pakistan will never happen. TFor 75 years, the Pakistani army has kept this dream alive only to justify its disproportionate share of the country's budget. Pakistan's key to prosperity is to forget about getting Kashmir and make peace with India. Indian IT corporations like TCS and Infosys would open software development centers in Pakistan. Other Indian corporate giants Adani, Reliance, Tata Motors, Mahindra & Mahindra would open manufacturing plants and ports there. Sun Pharmaceuticals and Cipla would readily open pharmaceutical units. In order to establish direct transit links to Iran, Afghanistan and central Asia, India would invest heavily in roads and trains along the east-west direction, which woud complement CPEC (north-south direction).
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Sanjoy Das May 16, 2023 02:27am
Kashmir Banega Pakistan will never happen. TFor 75 years, the Pakistani army has kept this dream alive only to justify its disproportionate share of the country's budget. Pakistan's key to prosperity is to forget about getting Kashmir and make peace with India. Indian IT corporations like TCS and Infosys would open software development centers in Pakistan. Other Indian corporate giants Adani, Reliance, Tata Motors, Mahindra & Mahindra would open manufacturing plants and ports there. Sun Pharmaceuticals and Cipla would readily open pharmaceutical units. In order to establish direct transit links to Iran, Afghanistan and central Asia, India would invest heavily in roads and trains along the east-west direction, which woud complement CPEC (north-south direction).
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Haq May 16, 2023 09:18am
Pakistan was created as an ideological Islamic state by our ancestors. We blindly followed rotten colonial rules & pro-elite system, instead of Sharia based upon Quran & Sunnah. Results are obvious... there are clear Hadits about this region (Pakistan & Afghanistan), renaissance of Islam. With most of Hadits regarding era close to Qiamat are fulfilled, we need to revert back to our original cause, i.e. Islamic Welfare State of Pakistan, a role model for entire World
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Niteowl May 17, 2023 01:09am
@Tulukan Mairandi, dei Sunni aduthavan suthaiye poi nonda vendiyadhu . Un oora paara mudhala
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