Large-scale manufacturing dips over 10pc amid cost of production crisis, high interest rates
Business
Almost all contributors saw reduced output
ISLAMABAD (Web Desk) – Pakistan experienced a 10.26 per cent decline in the output of large-scale manufacturing (LSM) sector in 2022-23, as rising cost of production thanks to higher power and gas tariffs, rupee depreciation and record-high interest rates have paralysed the economy.
This contraction comes flowing a 11.70pc increase in 2021-22 as the world reopened after the painful Covid-related restrictions and the consumers in Europe and North America – the top destinations for Pakistan’s exports – spent more due to the financial assistance extended by their respective governments.
One must also keep in mind that Russia had invaded Ukraine in Feb 2022 and its ripple effects were not immediately felt in first two or three months.
Read more: Weaker rupee didn't increase Pakistan's exports, it made cost of production unsustainable
Earlier figures had shown that Pakistan witnessed a 12.71pc decline in overall exports during 2022-23 when compared with 2021-22 as the total amount dipped to $27.54 billion against the previous level of $31.78bn.
It was mainly because of shrinking textile exports – from $19.33bn in 2021-22 to $16.50bn in 2022-23 – that represented a 14.63pc reduction, shows the data released by the Pakistan Bureau of Statistics (PBS).
Meanwhile, output growth during the last fiscal year was recorded only in furniture 35.51pc, other manufacturing (football) 28.99, wearing apparel 27.16pc, and leather products 1.29pc.
On the other hand, the details of contraction in large-scale manufacturing are given as:
Wood products 59.81pc; automobiles 49.99pc; machinery and equipment 45.23pc; other transport equipment 40.44pc; computer, electronics and optical products 30.34pc; pharmaceuticals 28.85pc; tobacco 28.36pc; coke and petroleum products 23.39pc; textile 18.68pc; fabricated metal 16.07pc; electrical equipment 15.46pc; non-metallic mineral products 12.10pc; fertilisers 9pc; paper and board 8.66pc; chemicals 6.96pc; food 6.90pc; beverages 6.43pc; iron and steel products 5.12pc; and rubber products 4.97pc.
