The recent data published by the Pakistan Bureau of Statistics (PBS) indicates a decline in the output of Large Scale Manufacturing Industries (LSMI) for Jul’23, showing a 3.6% decrease on a MoM basis and a 1.1% decrease YoY.

LSMI Index stood at 108.0 during Jul’23 against 109.2 in Jul’22.

The decline in LSM during first month of FY24 can be attributed primarily to factors such as: policy actions taken by the monetary and fiscal authorities to slow down aggregate demand and the high cost of doing business.

The sector-wise decrease during 1MFY24 was led primarily by:

Textile (-22.0% YoY), Coke & Petroleum Products (-2.3% YoY), Beverages (-6.7% YoY), Iron & Steel Products (-2.7% YoY), Automobiles (-66.1% YoY), Electrical Equipment (-22.4% YoY), Paper & Board (-15.4% YoY), Other Transport Equipment (-19.0% YoY), Fabricated Metal (-4.6% YoY), Wood Products (-4.5% YoY), Leather Products (-2.0% YoY), Furniture (-57.8% YoY), and Computer, Electronics and Optical Products (-32.1% YoY).

The sector-wise increase during 1MFY24 was led primarily by:

Food (+10.0% YoY), Chemicals (+5.9% YoY), Wearing Apparel (+30.8% YoY), Pharmaceuticals (+54.2% YoY), Non-Metallic Mineral Products (+35.2% YoY), Tobacco (+28.4% YoY), Rubber Products (+10.2% YoY), Machinery and Equipment (+3.9% YoY), and Other Manufacturing (+13.3% YoY).

Courtesy – AHL Research