LSMI shows promising growth, despite yearly decline

The Pakistan Bureau of Statistics (PBS) announced a noteworthy upswing in the Large-Scale Manufacturing Industries (LSMI) output. In August 2023, there was a 2.52 percent surge compared to the same month in 2022, and an impressive 8.44 percent leap from July 2023. Over the period of July-August 2023-24, the LSM sector displayed a growth of 0.50 percent in contrast to the preceding year.

However, the data reveals a substantial decline in LSM output during the fiscal year 2022-23, registering a 10.26 percent drop compared to the corresponding period in 2021-22. This drop could be attributed to various factors such as economic fluctuations, supply chain disruptions, or shifts in consumer demand.

The Quantum Index Number (QIM) for LSMI in August 2023 stands at 117, indicating a notable performance in the manufacturing sector. Similarly, for July- August 2023-24, it is estimated at 112.44, based on the provisional quantum indices. These figures provide a quantitative snapshot of the sector’s performance, offering insights into its trajectory.

The sector-wise analysis sheds light on both areas of growth and decline. Positive contributors include food, tobacco, and petroleum products, showcasing resilience and potential for expansion. Conversely, textile, electrical equipment, and automobiles experienced declines, suggesting areas that may warrant further attention and intervention.