LSM output shrinks 11.6pc in February

Large-scale manufacturing (LSM) shrank 11.6 per cent in February over the same month last year causing massive layoffs, especially in export-oriented textile industries, showed data released by the Pakistan Bureau of Statistics on Monday. The slowdown in industrial output is mainly contributed to the textile and clothing industries because exports from the sector posted double-digit declines. It is expected that exports will further fall in the coming months. The big industry production contracted for the sixth consecutive month of the current fiscal year indicating that economic growth will slip further. It is estimated that the fourth quarter will be more disturbing owing to the discontinuation of subsidised energy to industries along with the highest-ever cost of industrial inputs. The International Monetary Fund has recently revised downward the economic growth to 0.5pc for FY23. Similar lower projections came from the World Bank and Asian Development Bank at 0.4pc and 0.6pc, respectively. In January, the LSM growth declined by 7.9pc on a year-on-year basis as against a 3.51pc dip in December 2022. There was a negative growth of 5.49pc in November 2022, 7.7pc in October 2022 and 2.27pc in September 2022 on a year-on-year basis. While a paltry rise of 0.30pc was recorded in August after LSM shrank 1.67pc in July, the first month of the current fiscal year.