Large Scale Manufacturing Surged by 10.4% During July-March FY22

Pakistan’s Large Scale Manufacturing (LSM) sector staged an overall growth of 10.4 per cent during July-March FY22. Performance was broad-based on the back of solid growth of high-weighted sectors such as textile, food, chemicals, automobile, tobacco, and iron & steel products.

The textile sector is still the highest among all sectors of LSM. The sector grew by 3.2 per cent during July-March FY2022 compared to 8.0 per cent in the same period last year. Wearing apparel showed a growth of 34 per cent against a contraction of 35.6 per cent.

The automobile sector recorded a growth of 54.1 per cent during July-March FY2022 against 21.6 per cent growth last year. New Auto Policy to promote new technologies, including Electric Vehicles (EVs) and Hybrid, and accommodative monetary policy to promote auto financing helped boost production.

Pharmaceuticals growth witnessed a dip of 0.4 per cent during July-March FY22, against the growth of 10.5 per cent last year. Electrical equipment declined by 1.1 per cent, and chemical products grew by 15.2 per cent. The cement industry remained under pressure due to inflation and high commodity prices.

The spinning sector is the backbone of the ranking of textile production. It comprises 517 textile units (40 composite units and 477 spinning units). It has 13.414 million spindles and 198,801 rotors installed with capacity utilization of 84.55 per cent and 63.67 per cent.

The production of cotton cloth by the mill sector has slightly increased by 0.29 per cent, while non-mills performance remained subdued and recorded negative growth of 0.01 per cent during July-March FY22. However, the exports in terms of quantity and value increased by around 9 per cent and 26.5 per cent.