Big industry plummets 10.7pc in June
The Large Scale Manufacturing of the country showed a decrease of 10.17 percent in FY20, data released by the Pakistan Bureau of Statistics showed on Wednesday.
“The overall output of LSMI decreased by 10.17% for July-June, 2019-20 compared to JulyJune, 2018-19. The LSMI output decreased by 7.74% for June, 2020 compared to June, 2019 and increased by 16.81% when compared to May 2020,” said the PBS press release.
On a monthly basis, LSMI witnessed an appreciation from 101.97 to 119.10 in June 2020. The Pharmaceutical sector witnessed the highest positive change while the Food, Beverages & Tobacco sector followed behind.
The June 2020 LSM decreased by 7.74pc mainly due to a reduction in almost all of the sectors as demand across the country and the world plummeted ever since the spread of pandemic.
During the fiscal year, the textile sector recorded a decline of 10.37 percent; petroleum products declined by 20.10 percent; automobiles declined by 44 percent in FY20; electronics production declined by 35 percent in FY20 and engineering products declined by 19 percent in FY20.
“The production in July-June 2019-20 as compared to Jul-June 2018-19 has increased in Fertilizers and Paper & Board while it has significantly decreased in respect of Textile, Food, Beverages & Tobacco, Coke & Petroleum Products, Automobiles, Iron & Steel Products and Electronics,” the press release added further.
Compared to 2019-20, the large scale manufacturing in the fiscal year 2018-19 decreased by 3.38 percent.
Pakistan’s big industry output is expected to show some signs of revival in the next few months as the government has announced several incentives for investors to invest in the country’s construction sector.
Through dedicated packages, reduction in taxes and allowing amnesties for investors the government aims to spur economic activity with the support of construction sector which essentially improves the outlook for cement, steel, ceramics, electronic and other allied industries.