Big industry output grows for second month in a row

Large-scale manufacturing (LSM) expanded for the second consecutive month in September, with year-on-year growth of 1.01 per cent, reversing a trend of 14 months of contraction, data released by the Pakistan Bureau of Statistics showed on Wednesday. The LSM expansion can be attributed mostly to a government move to make it easier to open letters of credit (LCs) after being restricted to a few consumers and essential sectors. The removal of import restrictions, clearance of outstanding LCs, and improved dollar liquidity in the markets following an increase in SBP foreign reserves contributed towards the pick-up in economic activity. The LSM expansion can primarily be attributed to increased production within the garments sector, followed by food, petroleum products and pharmaceutical products.