Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Pakistan’s large-scale manufacturing (LSM) sector showed 12.84pc growth in July 2020 – April 2021, or the first 10 months of the country’s fiscal year, as export orders and industrial capacity increased, according to the Pakistan Bureau of Statistics (PBS). 

Compared to the 9pc negative  growth of FY20, the Jul-Apr period of FY21 showed good results. 


The LSM sector has been working in full-throttle mode at more than 95pc production capacity, said Zubair Tufail, ex-president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). 


Industries such as iron and steel, automobiles petroleum, and non-metallic minerals grew the most in Jul-Apr period. 

In April, the LSM Index touched 150 points as output increased by 68pc despite a 7pc drop in growth compared to March. Month-on-month statistics showed that the LSM sector is continuing with its downward trend for the third successive month in April. 


Despite this, the LSM growth in the first 10 months of FY 21 was at 12.84pc, surpassing the 9pc projection for Jul-Mar period. 

A surge in demand in the housing and construction industry caused a hike in construction material prices, leading to the steel, cement, and oil industry boom. Banks financing cars and workers’ remittances providing finance for housing at a subsidized rate helped this growth. Hgh agriculture turnaround and increase in automobile production have increased the sales of petroleum products. Recent wheat harvest has increased the demand for oil. 


The Pakistan government supported the LSM sector with a construction package in April last year, that created jobs. 

In the first 10 months of this fiscal year, the automobile output increased to 38pc while non-metallic mineral products’ output touched 24.6pc growth. However, electronics and engineering products’ output declined in Jul-Apr period. 




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