Industry activity in May falls 25pc
Pakistan’s large-scale manufacturing sector during the period between July to May 2019-20 declined by 10.32 per cent as the demand for the country’s goods in the local as well as international markets plummeted due to the spread of coronavirus, data released by the Pakistan Bureau of Statistics showed on Tuesday.
“The overall output of LSMI decreased by 10.32pc for July-May, 2019-20 compared to JulyMay, 2018-19,” the PBS said in the press release.
Moreover, during the month of May, 2020, the large-scale manufacturing also declined by 25pc compared to a rise of 2.45pc in May 2019.
“The LSMI output decreased by 24.80pc for May, 2020 compared to May, 2019 and increased by 20.50pc when compared to April 2020. Month-wise trend of QIM from May 2018 to May 2020,” it added.
On the flip side, the production in July-May 2019-20 as compared to Jul-May 2018-19 has increased in fertilizers and paper and board while it has significantly decreased in respect of textile, food, beverages and tobacco, coke and petroleum products, pharmaceuticals, automobiles, iron and steel products and electronics.
The manufacturing activity in the country has dipped ever since the pandemic engulfed the major economies across the world including Pakistan.
With demand for imports plummeting in the top export destinations of Pakistani goods such as the United States and European countries and the lockdowns enforced by the government, manufacturers have had to shutdown production and sit idle at their factories.
However, there has been some rebound in the last two months as the global economies come out of lockdown and Pakistani government allows the reopening of factories and industries under standard operating procedures, the activity is likely to pick up.
The outlook for petroleum production looks especially bright as the provincial government of Sindh has allowed the opening of petrol pumps for 24 hours two days ago.