Latest news with #LSMI
Business Recorder
18-06-2025
- Business
- Business Recorder
Apr LSMI output grows 2.29pc YoY
ISLAMABAD: The large-scale manufacturing Industries (LSMI) of the country has registered an increase of 2.29 percent in April 2025 to 108.37 compared to last year's 105.93, the LSMI data released here on Tuesday by the Pakistan Bureau of Statistics (PBS) revealed. On a monthly basis, the LSMI registered a decline of 3.2 per cent compared to March's 111.95 points. Cumulatively in the 10 months of the ongoing fiscal year 2024-25, the LSM showed a contraction of 1.52 per cent on a year-on-year (YoY) basis. On YoY basis automobile industry posted 42.16 per cent growth, cotton yarn 8.40 per cent, garments 6.01 per cent, petroleum products 5.01 per cent and cotton clothes 0.75 per cent, while sugar industry witnessed a decline of 14.55 per cent, iron and steel 10.11 per cent, cement 5.62 per cent and fertilizer 0.73 per cent. Jul-Mar LSMI output grows 1.47% YoY The main contributors remained tobacco (0.17 per cent), textile (0.49) garments (0.91), petroleum products (0.35), pharmaceuticals (0.16), automobiles (0.73), other transport equipment (0.15), food (-0. 50), chemicals (-0.42) non-metallic mineral products (- 0.61), cement (-0.32), iron and steel products (-0.47), electrical equipment (-0.42), machinery and equipment (-0.18) and furniture (-1.82). The production in July-April 2024-25 as compared to July-April 2023-24 has increased in tobacco, textile, wearing apparel, coke and petroleum products, automobiles and other transport equipment while it decreased in food, chemical products, non-metallic mineral products, iron and steel products, electrical equipment, machinery and equipment, and furniture. The performance of LSMI is a key indicator of the overall health of the industrial sector and is assessed monthly through the Quantum Index of Large Scale Manufacturing Industries (QIM). Historically, LSM dominates the manufacturing sector of GDP, accounting for around 69 per cent of manufacturing, a sub-component of Industry, and about eight per cent of the overall GDP. Economic activity began to rebound in the second half of FY24. However, global demand slump, currency devaluation, and a widening current account deficit severely limited the government's flexibility, particularly in maintaining fiscal discipline amidst stringent financial conditions. Following products registered an increase beverages 0.15 per cent, tobacco 0.17 per cent, textile 0.49 per cent per cent, wearing apparel 0.91 per cent, leather products 0.01 per cent, wood products posted zero per cent growth, paper and board products 0.03 per cent, coke and petroleum products posted a growth of 0.35 per cent, pharmaceuticals 016 per cent, computer, electronics and optical products posted zero per cent growth, automobiles 0.73 per cent and other transport equipment 0.15 growth. Following sectors registered a decline food 0.50 per cent, chemicals 0.42 per cent, chemical products 0.38 per cent, fertilisers 0.04 per cent, rubber products zero per cent, non-metallic mineral products 0.61 per cent, iron and steel products 0.47 per cent, fabricated metal 0.06 per cent, electrical equipment 0.42 per cent, machinery and equipment 0.18 per cent, furniture 1.82 per cent, and other manufacturing 0.08 per cent. Copyright Business Recorder, 2025
Business Recorder
17-05-2025
- Business
- Business Recorder
Jul-Mar LSMI output grows 1.47% YoY
ISLAMABAD: The overall Large Scale Manufacturing Industries sector has shown a growth of 1.47 per cent during July-March 2024-25 when compared with the same period of last year, says the Pakistan Bureau of Statistics (PBS). QIM estimated for March, 2025 is 117.20. The LSMI output increased by 1.79 per cent for March 2025 when compared with March 2024 and decreased by 4.64per cent when compared with February 2025. The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for March, 2025 with base year 2015-16 have been developed on the basis of latest data supplied by the source agencies. Jul-Feb FY25: LSM sector contracts 1.90pc According to the provisional quantum index numbers of the overall Large Scale Manufacturing Sector has shown a growth of 1.47per cent during July- March 2024-25 when compared with the same period of last estimated for July-March, 2024-25 is 116.01. The main contributors towards overall growth of 1.47 per cent are tobacco (0.17 per cent), textile (0.35 per cent) garments (1.14 per cent), petroleum products (0.30 per cent), pharmaceuticals (0.13 per cent), automobiles (0.68 per cent), other transport equipment (0.14 per cent), food (0. 09 per cent), chemicals (0.45 per cent) non-metallic mineral products (0.68 per cent), cement (0.37 per cent), iron and steel products (0.51 per cent), electrical equipment (0.47 per cent), machinery and equipment (0.17 per cent) and furniture (1.94 per cent). The sectors showing growth during July-Mar 2024-25 compared to July-Mar 2023-24 are beverages 0.38 per cent, tobacco 23.76 per cent, textile 5.15 per cent, wearing apparel 0.41 per cent, leather products 4.33 per cent, wood products 8.36 per cent, paper and board 1.98 per cent, coke and petroleum products 4.47 per cent, pharmaceuticals 4.75 per cent, computer, electronics and optical products 8.15 per cent, automobiles 18.80 per cent, other transport equipment 27.40 per cent. The sectors showing decline during July-Mar 2024-25 compared to July-Mar 2023-24 are food 20.09 per cent, chemicals 6.83 per cent, chemicals products 19.36 per cent, fertilisers 0.87 per cent, rubber products 3.50 per cent, non-metallic mineral products 5.10 per cent, iron and steel products 4.24 per cent, fabricated metal 19.13 per cent, electrical equipment 9.21 per cent, machinery and equipment 71.74 per cent, furniture 59.81 per cent. Copyright Business Recorder, 2025
Business Recorder
17-05-2025
- Business
- Business Recorder
Jul-Mar LSMI output grows 1.47pc YoY
ISLAMABAD: The overall Large Scale Manufacturing Industries sector has shown a growth of 1.47 per cent during July-March 2024-25 when compared with the same period of last year, says the Pakistan Bureau of Statistics (PBS). QIM estimated for March, 2025 is 117.20. The LSMI output increased by 1.79 per cent for March 2025 when compared with March 2024 and decreased by 4.64per cent when compared with February 2025. The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for March, 2025 with base year 2015-16 have been developed on the basis of latest data supplied by the source agencies. Jul-Feb FY25: LSM sector contracts 1.90pc According to the provisional quantum index numbers of the overall Large Scale Manufacturing Sector has shown a growth of 1.47per cent during July- March 2024-25 when compared with the same period of last estimated for July-March, 2024-25 is 116.01. The main contributors towards overall growth of 1.47 per cent are tobacco (0.17 per cent), textile (0.35 per cent) garments (1.14 per cent), petroleum products (0.30 per cent), pharmaceuticals (0.13 per cent), automobiles (0.68 per cent), other transport equipment (0.14 per cent), food (0. 09 per cent), chemicals (0.45 per cent) non-metallic mineral products (0.68 per cent), cement (0.37 per cent), iron and steel products (0.51 per cent), electrical equipment (0.47 per cent), machinery and equipment (0.17 per cent) and furniture (1.94 per cent). The sectors showing growth during July-Mar 2024-25 compared to July-Mar 2023-24 are beverages 0.38 per cent, tobacco 23.76 per cent, textile 5.15 per cent, wearing apparel 0.41 per cent, leather products 4.33 per cent, wood products 8.36 per cent, paper and board 1.98 per cent, coke and petroleum products 4.47 per cent, pharmaceuticals 4.75 per cent, computer, electronics and optical products 8.15 per cent, automobiles 18.80 per cent, other transport equipment 27.40 per cent. The sectors showing decline during July-Mar 2024-25 compared to July-Mar 2023-24 are food 20.09 per cent, chemicals 6.83 per cent, chemicals products 19.36 per cent, fertilisers 0.87 per cent, rubber products 3.50 per cent, non-metallic mineral products 5.10 per cent, iron and steel products 4.24 per cent, fabricated metal 19.13 per cent, electrical equipment 9.21 per cent, machinery and equipment 71.74 per cent, furniture 59.81 per cent. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
PRAC raises concern over ‘insufficient' policy rate cut
KARACHI: The Policy Research Advocacy Council (PRAC) has expressed concern over the SBP's decision to cut the policy rate by only 100 bps on May 5, despite inflation falling to a record low of 0.28% in April 2025. PRAC had recommended a deeper 200 bps cut, citing the need for stronger easing under current macroeconomic conditions. Mohammad Younus Dagha, Chairman PRAC and former Federal Secretary, stated that the MPC should have considered the challenges to the industrial and export sectors that the very high real interest rates have been posing for them. The inflation rate in Pakistan has remained below the inflation target of 5-7% since November 2024. In response, the MPC-SBP has gradually lowered the policy rate from 15% to 11% over the last few meetings. Despite this reduction, the 11% policy rate remains high, continuing to stifle private sector credit growth and hinder economic activity especially compared to India (6.0%), Vietnam (4.5%), and China (3.1%). This puts Pakistan at a competitive disadvantage in fostering business expansion and recovery. Despite inflation falling from 4.9% in November 2024 to just 0.28% in April 2025—well below the SBP's target range of 5-7%—the policy rate remains significantly high. Even core inflation, which excludes food and energy, stood at only 7.4% in April 2025 and does not justify maintaining such tight monetary conditions. Persistently high interest rates are suppressing private investment, credit demand, and overall economic activity. Credit to the private sector in Pakistan has fallen to one of the lowest levels among emerging markets. As of 2023, it accounts for just 12.0% of GDP, significantly lagging behind India (50.1%), Türkiye (50.3%), and Bangladesh (37.6%). The gap between public and private sector lending continues to grow, with the government, including public sector enterprises, taking 76.5% of total credit, effectively crowding out the private sector. By March 2025, the private sector received only 23.5% of total credit, down from 29% in March 2022 when policy rates were in single digits. The Large-Scale Manufacturing Index (LSMI) dropped by 3.5% during Feb 25 compared to Feb 24. The private sector has been hindered by high interest rates, a shrinking share of credit in the market, and excessive collateral requirements. Dagha stressed the need to increase private sector credit as a percentage of GDP by encouraging commercial banks to expand lending to SMEs, streamline financing processes, and reduce collateral requirements. A larger portion of private sector credit should be directed toward SMEs and key growth sectors. Copyright Business Recorder, 2025
