Pakistan’s LSM Growth Shrinks 0.4"> Pakistan’s LSM Growth Shrinks 0.4" /> Pakistan’s LSM Growth Shrinks 0.4">
ISLAMABAD: Large-scale manufacturing (LSM) output declined 0.4% in July-September FY23 compared to the same quarter last fiscal as costlier inputs due to rupee devaluation, high financing costs, and global slowdown took a toll.
The LSM sector, which contributes 9.2% to Pakistan’s GDP, has been showing a contraction since the start of FY23.
Sectors holding a significant share in LSM — including textiles, automobiles, pharmaceuticals, food, coke and petroleum products, and non-metallic minerals — registered significant declines.
There was zero growth in LSM in September 2022 against the same month a year ago; however, over the previous month, its output minutely increased i.e. 0.1%, the Pakistan Bureau of Statistics (PBS) reported on Wednesday.
It should be noted that on Monday, State Minister for Finance Ayesha Ghous Pasha told a parliamentary panel that the country’s GDP growth rate might fall short of the target by over 2% and tax collection would also get a hit.