ISLAMABAD: Large-scale manufacturing (LSM) grew by 4.11 per cent in the first two months of the current fiscal year from a year ago.
Major sectors that contributed to the LSM growth in July-August 2015 included automobiles (44.46pc growth), fertilisers (15.13pc), leather products (19.05pc) and chemicals (12.71pc).
The growth in the LSM sector, which accounts for 70pc of industrial production, was hampered by a range of issues, including weak exports of cotton yarn and gas shortages.
Other reasons include closure of a large chip-board plant and substitution of domestic production of edible oil by imports, showed Pakistan Bureau of Statistics data released on Monday.
In the first two months of this fiscal year, stability was seen in LSM growth as a number of groups performed well as compared to last year. Iron and steel products showed improved performance on account of government bailout package.
Likewise, the automobile sector flourished due to reduction in sales tax on tractors as well as introduction of new models by auto-makers.
The growth in iron and steel products came on the back of a 23.59pc rise in the production of billets/ingots and 18.90pc in coke. The overall growth in steel production remained strong on account of capacity expansion.
In the auto sector, trucks production rose by 26.95pc, tractors by 0.53pc, buses 62.50pc, cars and jeeps 62.94pc and LCVs (light commercial vehicles) by 156.12pc. Production of motorcycles increased by 14.27pc during the months under review.
Tractors production also rose after a cut in general sales tax (GST) from 16pc to 10pc in the latest budget.
The demand for commercial vehicles increased on account of Punjab government’s Apna Rozgar Scheme which is aimed at distributing 50,000 vehicles among jobless youth.
In leather products, growth was mainly because of footwear products (26.12pc). In electronics products, growth in refrigerators was 4.08pc, deep freezers 45.93pc, electric meters 7.16pc, and storage batteries 20.20pc.
In pharmaceuticals group, injections, capsules and tablets were the main contributors which managed to grow by 14pc, 13.05pc and 4.73pc, respectively. The growth in pharmaceuticals industry is heavily dependent on import of raw material due to non-availability of domestic inputs.
Moreover, no local pharmaceutical company has a manufacturing plant approved by the US Food and Drug Administration (FDA) which is a prerequisite for pharmaceutical exports to most countries.
In non-metallic mineral products, cement grew by 7.56pc in July-August 2015. Petroleum products growth came mainly on the back of 24.04pc rise in production of kerosene, high speed diesel 0.68pc, diesel 26.81pc, lubricants 12.08pc, petroleum products 47.71pc and solvent naphtha 1.54pc.
In food and beverages and tobacco group, ghee production rose by 4.53pc year-on-year in July-August 2015. The production of cooking oil increased by 7.68pc and of tea by 11.32pc.
