Big industry production contracts in July

Large-scale manufacturing (LSM) experienced a year-on-year negative growth of 1.09 per cent in the first month of the current fiscal year, data released by the Pakistan Bureau of Statistics showed on Monday. On month-on-month, it witnessed a steeper contraction of 3.62pc in July. The decline in LSM can primarily be attributed to a slowdown in production within the textile and clothing sectors focused on exports. In a concerning trend, the production of LSM has experienced negative growth since August 2022. In FY23, the LSM shrank by 10.26 year-on-year. In FY22, the LSM expanded by 11.7pc year-on-year. The production estimate for LSM industries was made using the new base year of 2015-16. The significant number of job losses is a clear outcome stemming from the downturn experienced by major industries in FY23. The decrease in production capacity has resulted in a regrettable scenario, leaving numerous individuals unemployed.