Large-scale manufacturing surges by 22.4pc

ISLAMABAD: Large-scale manufacturing (LSM) grew by 22.39pc in March, reflecting phenomenal growth in industrial output, data released by the Pakistan Bureau of Statistics (PBS) showed.

The surge is partly explained by the lockdown that came into effect on March 23 last year. On a month-onmonth basis, big industry production contracted by 7.66pc. The LSM expansion had slowed in January after posting a double-digit growth in December and November on the back of higher automobile, cement products and one-time sugar output, which reflects the revival of industrialisation. In February, LSM posted a growth of 4.85pc.

However, on month-on-month basis, LSM contracts by 7.7pc In December and November last year, LSM grew by 11.4pc and 14.5pc, respectively, on a year-on-year basis.

During the first nine months (July-March) of the fiscal year 2020-21, LSM grew by 8.99pc. Since July 2020, LSM has rebounded after suffering months of a downturn on account of Covid-19 mainly in the automobile, construction, textile, food, chemicals, nonmetallic mineral products and pharmaceutical sectors. The uptick during the nine months of FY21 reflects a revival in economic activities.

The PBS snapshot of the manufacturing activity showed that 12 out of 15 sub-sectors in LSM rose during the month under review. Low-interest rates and reduction in duties on raw materials are expected to further spur economic activities during the current fiscal year.