The overall output of Large-Scale Manufacturing Industries (LSMI) increased by 14.57pc in July-May 2020-21 compared to 11MFY20. AFP/File
ISLAMABAD: The Large-Scale Manufacturing (LSM) continued its growth momentum in the fourth consecutive month as big industrial sectors’ output rose year-on-year by 36.84 per cent in May, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday.
The overall output of Large-Scale Manufacturing Industries (LSMI) increased by 14.57pc in July-May 2020-21 compared to 11MFY20. However, on a month-on-month basis the industrial output shrank 3.93pc.
The LSM data released by the PBS after collecting it from the Provincial Bureau of Statistics (BOS), the Oil Companies Advisory Council (OCAC) and the Ministry of Industries showed that the OCAC recorded month-on-month decline of 8.32pc in May against previous month, and 4.15pc growth year-on-year in May against May 2020.
Growth rate of 3.94% not surprising
Govt must be committed to reforms without which growth cannot be sustainable
ISLAMABAD:
When the National Accounts Committee published an estimate of 3.94% economic growth based on the July 2020-April 2021 period, it caught most of the commentators by surprise and the estimate was disputed.
In this article, we argue that this should not have been the case, using insights obtained from our analysis.
For the last 18 months, we have published a monthly index, which takes into account Pakistan’s macro-economy based on the analysis of four periodic datasets: trade volume (TV), Consumer Price Index (CPI), Quantum Index of Large-Scale Manufacturing Industries (QIM) and Long-Term Financing Facility (LTFF). From July 2020 to April 2021, the index has exhibited an upward trend, registering a growth of 19%. It shows that the economy has demonstrated positive growth for all but two months.
A little over half-way through the current financial year, Pakistan’s economic outlook looks strong for 2021. Several indicators reveal that our economy has done well in spite of the Covid-19.