Pakistan’s large-scale manufacturing industries (LSMI) output rose by 14.46pc in November from the prior year as its economy continued to recover from the impact of the COVID-19 pandemic. Big industry growth in November improved by 1.35pc from October, according to Pakistan Bureau of Statistics (PBS) data.
LSMI constitutes 80pc of Pakistan’s total manufacturing capacity and accounts for more than 10pc of the country’s overall output.
The country’s food and beverage production grew by 57.58pc, followed by automobiles with 44.53pc growth in November from a year ago. Non-metallic mineral production rose by 12pc, while paper production grew by 10.22pc from the prior year. Sectors that registered a decline in output in November include wood products down by 58.84pc, engineering goods down by 26.67pc and leather products down by 40.47pc. Electronics and iron and steel products grew in November by 2.91 and 3.39pc, respectively. However, in the cumulative period from Jul-Nov, production fell by 18pc and 3.39pc, respectively.
In November, like in October, steelmakers focused on long steel output, while flat steel production lagged amid slow demand from auto sector. Low-priced imports of HRC/CRC from China, high scrap and iron ore price and sluggish demand for steel have squeezed the margins of steel mills in Pakistan while harsh winter in some parts of the country has slowed the pace of construction and transportation dampening steel consumption. Subdued steel demand has reduced steelmakers’ ability to raise prices in proportion to the rise in input costs. Mills are also constrained by cash flow issues due to slow economic activities.
|Pakistan’s steel production in November (mt)|
|Production||Nov-20||Nov-19||Change YoY||Jul-Nov 20||Jul-Nov 19||Change YoY|
|HRC / CRC||2,80,500||3,61,100||-22.32||13,20,200||18,09,400||-27.04|
Vehicle production continued to recover in Pakistan. Jeep and car production rose to 12,235 units in November, up by 72.15pc from a year ago though it is still down by 1.11pc on a cumulative basis in the Jul-Nov period. Production of tractors rose to 3,807units in November, up by 57.84pc from a year ago. Buses production rose by 14.06pc, while trucks output continued to slide by 10.16pc from the prior year. LCV production increased by 214.91pc to 2,028 units, while motorcycle rose to 225,706 units in November, up by 20.09pc from a year ago.