Industrial output shrinks 0.39pc in first half of FY24

ISLAMABAD: The industrial output contracted by 0.39 percent in the first half of the fiscal year 2023-24, as key sectors such as textiles, automobiles, and iron & steel products suffered declines, official data showed on Thursday.

The Pakistan Bureau of Statistics (PBS) reported that the large-scale manufacturing (LSM) sector, contributing approximately a quarter to the country's GDP, witnessed a year-on-year increase of 3.43 percent in December 2023. This rise was accompanied by a month-on-month growth of 15.7 percent, primarily propelled by improvements in food and beverages, garments, pharmaceuticals, coke and petroleum products, chemicals, machinery and equipment, and leather products.

October marked a notable downturn with a 4.08 percent year-on-year contraction in LSM output, while positive growth was recorded in August, September, and November.

The PBS, utilizing data from various sources including the Oil Companies Advisory Committee (OCAC), the Ministry of Industries and Production, and provincial Bureau of Statistics, released these findings.

During December 2023, twelve out of twenty-five sectors exhibited positive growth, maintaining a similar trend in cumulative growth for the first half of the fiscal year. However, certain key sectors experienced declining output compared to the same period the previous year, with notable declines in automobile output by 53 percent, furniture by 52 percent, and textiles by 1.05 percent among others. Similarly, cement output also fell by 2.27 percent, tobacco by 24.1 percent, other transport equipment by 20 percent, computer, electronics, and optical products by 7.9 percent, electrical equipment by 1.9 percent, paper and board by 9 percent, fabricated metal by 12.2 percent, and non-metallic minerals output also shrinking by 2.3 percent over the corresponding month of the last year.

On the positive side, a dozen sectors experienced growth, with food increasing by 6.77 percent, beverages by 9.77 percent, garments by 20.8 percent, leather products by 7.2 percent, wood products by 28.4 percent, coke and petroleum products by 17.85 percent, and chemicals by 2.6 percent, including a 4.65 percent rise in fertilizers. Similarly, pharmaceutical output increased by 20.1 percent, machinery and equipment by 148 percent, footballs by 28.3 percent, and iron & steel by 0.4 percent compared to the corresponding month of the previous year.