The recent data by the Pakistan Bureau of Statistics shows that the Large-Scale Manufacturing in March 2021 grew 22.39 percent compared to March 2020, showing an increase in the industry.
On the other hand, on Month-on-Month (MoM) basis it went down 7.66 percent compared to February 2021. It is worth mentioning that the constant upward trend in August 2020 saw a turnaround in January 2021, after which the industry declined in February and March 2021.
This can be attributed to the impact of the third wave of Covid 19 in Pakistan, which has led to the government taking measures to restrict industries.
The six-month increase ending in January was seen on the back of higher automobile and cement products, reflecting a revival of industrialization.
LSM saw a high point in January with the index at 175.47, increasing constantly from November, with an increase of 19.78 percent from 146.9 in November 2020. However, the industry has seen an 11.32 percent decrease in output in two months till March, with the index at 155.60.
Industry Wise Data
According to the sectors, the greatest YoY growth was shown in the Automobile sector, where manufacturing grew 123.27 percent in March 2021, compared to March 2020. The monthly impact of this on the GDP growth is also high at 4.65 percent. The sector saw a 23.38 percent growth in 9MFY21 from July 2020 to March 2021, compared to 9MFY20.
The second-highest increase in March 2021 compared to March 2020 was seen in Coke and Petroleum Products, which rose 76.85 percent. According to Oil Companies Advisory Committee (OCAC), the increase in high-speed diesel increased by 118.93 percent.
The textile sector also saw a 40.41 percent increase YoY, and 9MFY21 saw an increase of 5.9 percent compared to 9MFY20. The textile sector had the highest monthly impact on growth, with an increase in GDP growth impact of 8.88 percent.
On the other hand, the greatest decline in YoY production in March 2021 compared to March 2020 was seen In Rubber Products, with a decrease in output by 30.36 percent. Even in 9MFY21, the rubber products output saw a 12.92 percent decrease.
Wood products saw the highest decrease in July 2020 to March 2021 (9MFY21), compared to the same period last year (9MFY20), of 45.77 percent. However, on a YoY basis, March 2021 saw the highest increase, with a value of 186.53 percent.
Overall, the production in Large Scale Manufacturing in July-March 2020-21 as compared to July-March 2019-20 has increased in Textile, Food, Beverages & Tobacco, Coke & Petroleum Products, Pharmaceuticals, Chemicals, Non-Metallic Mineral Products, Automobiles, and Fertilizers while it decreased in Electronics, Leather Products, and Rubber Products.