Growing steel output helps LSM post 3.9 percent growth in July-December

KARACHI: Large scale manufacturing (LSM) sector posted year-on-year 3.9 percent growth in the first half of the current fiscal year as construction boom aroused demand of steel products amid the China-sponsored infrastructure developments, official data showed on Saturday.

Iron and steel production recorded the highest growth of 15.63 percent during the July-December period of 2016/17, said the Pakistan Bureau of Statistics (PBS). 

Production of billets and ingots increased 25.76 percent to 1.805 million tonnes in the first half, while outputs of sheets, strips and coils rose 8.29 percent to 1.676 million tonnes during this period.   Electronics manufacturing registered the second highest rise of 14.35 percent in the period under review, followed by non-metallic mineral products (9.31pc), pharmaceuticals (7.9pc), food, beverages and tobacco (6.95pc), automobiles (6.67pc), paper and board (5.69pc), fertilisers (3.47pc), rubber products (0.45pc) and textile (0.14pc).

In December 2016, iron and steel production of 20.85 percent was also the highest among all the major industries, followed by food, beverages and tobacco (16.24pc) and paper and paper board (16.13pc).   Improving economic indicators are encouraging investment from local as well as foreign investors. China pledged $55 billion for the infrastructure development under the China-Pakistan Economic Corridor projects, while private sector is building a series of residential and commercial apartments around the country.   The PBS recorded 7.04 percent rise in LSM output in December 2016 over the last year and month-on-month 12.89 percent increase.

In July-December, wood products output sharply fell 96.41 percent, followed by leather products (18.93pc), engineering products (4.63pc), chemicals (2.7pc) and coke and petroleum products (1.33pc).

The bureau logs trend of industrial sector on the basis of statistics from Oil Companies Advisory Committee (OCAC), ministry of industries and provincial bureaus of statistics. Ministry of industries track production trend of 36 products, OCAC monitors 11 oil, lubricant and petroleum products and provincial authorities measure output 65 items nationwide. 

The OCAC recorded a slight year-on-year 0.02 percent fall in production in the July-December period of 2016/17, although output of jet fuel oil increased 4.92pc to 564 million litres, motor spirits rose 5.04 percent to 1.231 billion litres, furnace oil inched up 1.01 percent to 1.678 billion litres and liquefied petroleum gas production surged 11.25 percent to 235 million litres during this period.

Provincial authorities registered a little year-on-year 0.93 percent increase in production in the first half. Deep freezers manufacturing rose 54.1 percent 48,555 units. Production of electric fans increased 32.24 percent to 978,373 units, while number of refrigerators jumped 25.01 percent to 787,309 units. These were the top three items with highest production growth. 

Ministry of industries logged 2.99 percent growth in July-December 2016/17 over the same period last year. Manufacturing of tractors, trucks and buses also saw noticeable jump with 63.32 percent to 21,336 units, 63.63 percent to 3,806 units and 34.07 percent to 669 units. Sugar production soared 52.43 percent to 1.409 million tonnes in the first half of the current fiscal year.