By Muskan Naveed ISLAMABAD, March 04 (INP-WealthPK): The provisional data released by Pakistan Bureau of Statistics reveals that the Quantum Index Number (QIM) for Large-Scale Manufacturing Industries (LSMI) posted a growth of 7.4% during the first half of the fiscal year (July-December) 2021-22, reports WealthPK. The data was sourced from Provincial Board of Statistics (BOS), the ministry of industries and Oil Companies Advisory Committee (OCAC). The OCAC index recorded a growth of 0.7% during the July-December period when compared with the same period last year. The ministry of industries’ index experienced a positive change of 6.6% while the provincial BOS had the most significant contribution of 9.5%. The three agencies’ indices totalled at a cumulative growth of 7.4% for LSMI during the first half of 2021-22. The monthly quantum index of manufacturing shows that the index is at its highest in absolute terms since 2019. The manufacturing experienced several breaks over the course of the two-year period from November 2019. However, performance of the industry began improving as the fiscal year 2022 started. The index has been rising steadily since July 2021. In December, the manufacturing industry rose sharply with a month-on-month increase of 10.5% and 6.4% year-on-year increase. [caption id="attachment_64470" align="aligncenter" width="696"] Figure 1: Source, Pakistan Bureau of Statistics[/caption]  The sectors, which recorded the highest growth rates during the first half of 2021-22 when compared to the same period of 2020-21, are: furniture 594%, wood products 292%, automobiles 69%, tobacco 50% and wearing apparel 20.5%. Automobiles registered the highest year-on-year growth rate for 2021-22 at 1.8%, followed by wearing apparel at 1.6% and furniture at 1.3%. On the other hand, pharmaceuticals, rubber products and electronics were on a declining trend during the time period. The incumbent government has been undertaking various initiatives to boost manufacturing. The boost in manufacturing is attributed to Pakistan’s new auto policy, according to federal minister for industries and production Khusro Bakhtiar. The new Auto Industry Development and Export Policy 2021-2026 is geared towards improving quality, implementing high safety standards, increasing affordability and promoting local production. Moreover, a National Small and Medium Enterprises policy has also been designed to promote the growth of small businesses, while the growth in the textile industry is supported by the third Textiles and Apparel Policy. Manufacturing in Pakistan accounts for 18% of the Gross Domestic Product, but its share should be higher keeping in mind the growing population. The large-scale manufacturing sector plays a critical role in the success of an economy. The recent performance of the large-scale manufacturing industry coupled with the favourable policies of the government indicates that an uptrend in QIM can be sustained for economic prosperity.