Major industries in Pakistan show notable increase in production

ISLAMABAD: Pakistan has seen a surge in the production of major industries for the third consecutive month in January, indicating a gradual revival in industrial output.

According to data from the Pakistan Bureau of Statistics (PBS), major industries recorded a 1.84 per cent increase on an annual basis and a 0.03 per cent rise on a monthly basis in January. This follows a 3.43 per cent increase in December 2023 and a 1.4 per cent rise in November, signaling a sustained uptrend in industrial production.

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The notable contributors to this growth include beverages, apparel, leather products, electrical appliances, pharmaceuticals, and chemicals, collectively witnessing a remarkable 59 per cent increase. Notably, this surge in production comes after a 14-month decline, with major industries experiencing positive growth in August 2023 and September.

However, October saw a 4.08 per cent year-on-year decline in output due to factors such as improved dollar supply, removal of import barriers, clearance of pending letters of credit, and increased foreign exchange reserves with the State Bank, stimulating economic activities.

Despite these fluctuations, January’s production figures indicate positive growth in 10 out of 22 sectors, including beverages (2.02 per cent), apparel (28.06 per cent), leather products (10.43 per cent), wood products (26.97 per cent), chemicals (19.23 per cent), pharmaceuticals (16.58 per cent), and machinery (161.93 per cent).

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However, the textile sector witnessed a contraction, with ready-made garments recording a negative growth of 28.06 per cent in January. Similarly, the production of edible oil increased by 6.79 per cent, while vegetable ghee production decreased by 9.24 per cent.

In the petroleum products sector, there was a negative growth of 2.42 per cent in January, primarily due to declines in kerosene (19.80 per cent), batching oil (19.69 per cent), solvents and naphtha (21.23 per cent), and furnace oil (16.37 per cent). However, petrol production increased by 4.01 per cent, diesel by 0.76 per cent, and LPG production by 2.75 per cent.

Iron and steel production saw a modest increase of 1.04 per cent in January, while fertilizer production surged by 30.32 per cent. Furthermore, the production of rubber products increased by 8.13 per cent, and pharmaceuticals by 16.58 per cent, with machinery manufacturing witnessing an impressive growth of 161.63 per cent.

This consistent growth in major industries production signifies a positive trajectory for Islamabad’s economy, indicating resilience and potential for further expansion in key sectors. – INP