Big industry posts 14.46pc growth in November

ISLAMABAD: Large scale manufacturing (LSM) sector posted 14.46 percent year-on-year growth in November with economic activities on a strong recovery path after monthslong lockdown last year, official data showed on Tuesday.

LSM grew 1.35 percent if compared with October, according to the Pakistan Bureau of Statistics (PBS). The overall output of LSM increased 7.41 percent for July-November.

The government that has been under criticism for downtrend in industrial manufacturing in the past hailed the recovery as a way to make up for the past deeds.

“Pakistan is successfully reversing the tide of de-industrialisation… Capacity enhancements, new investments and modernisations are already in play,” Hammad Azhar, minister for industries and production said in a twitter message.

In November, all the three data collection authorities registered increase in production. Ministry of industries, measuring output trend of 36 items, recorded a 12.36 percent increase in production. Provincial bureau of statistics, counting production of 65 products, logged 2.03 percent growth. Oil Companies Advisory Council, logging outputs of 11 oil and petroleum products, measured growth of 0.07 percent year-on-year.

Industrial growth has been accelerating since last July which was the first month of growth after six months of depression aggravated by industrial and economic activity shutdown associated with the coronavirus. LSM, which accounts for approximately 80 percent of manufacturing sector, posted an increase of 10 percent year-on-year in December 2019.

The production in July-November 2020/21 as compared to July-November 2019/20 has increased in textile, food, beverages and tobacco, coke and petroleum products, pharmaceuticals, chemicals, non-metallic mineral products, automobiles, fertilisers and paper and paperboard, while it decreased in iron and steel products, electronics and leather product.

The contribution of manufacturing to the economy came down to 12.1 percent in 2018 when the current government took the helm from a high of 17.5 percent in 2005. “This decline in share of manufacturing has seen Pakistan’s share of global exports staying flat while those of competitor countries have seen large increases,” Pakistan Business Council said in a report. “Without significant intervention to reverse this trend of deindustrialization, Pakistan will continue to be plagued by high unemployment and a low export base as the country continues to focus on commodities, intermediate goods or low value added finished products.” The manufacturing sector contracted 2.6 percent in FY2020 as shutdowns and supply chain disruptions related to COVID-19 exacerbated other adverse factors affecting the sector since FY2019, Asian Development Bank said in a report.