ISLAMABAD: The large-scale manufacturing sector grew 10.7 percent in the first ten months of the current fiscal year, a momentum that may be lost in the coming fiscal year due to rising production costs and the government’s policy to slow the economy.
The Pakistan Bureau of Statistics (PBS) released the data on Thursday but did not provide a breakdown of the three main sources of LSM data, further compromising transparency.
Fingers have already been pointed at the PBS, which has allegedly manipulated inflation figures in recent weeks by reporting wheat flour prices in Punjab at Rs980 per 20 kg.
According to PBS, the sugar, cigarette, textile, and chemical sectors all contributed positively to the LSM sector, which maintained double-digit growth.
The annual increase in LSM was 15.4 percent in April compared to the previous year, with a low base impact also contributing to the high growth rate. However, the month-on-month growth rate fell 13.3 percent in April compared to the previous month.
The coalition government has decided to restart the stalled IMF programme and has announced plans to implement strict fiscal and monetary policies.
Excluding interest payments and defence, the government has either allowed a nominal increase or cut spending in many areas for the coming fiscal year.
The Pakistan Business Council (PBC) on Thursday urged the central bank to refrain from raising interest rates further, arguing that higher fuel prices and rupee depreciation were already dampening demand.
Higher fuel prices and rupee depreciation would have a significant dampening effect on demand. As a result, the PBC stated in a tweet that “further increases in policy rate are unnecessary.”
