Small and Household Manufacturing Industries (SHMIs): PBS report provides data on economic variables
ISLAMABAD: Comparing Small and Household Manufacturing Industries (SHMIs) 2015 with SHMIs 2006-07 and 1996-97, it has been observed that overall manufacturing units have increased with an annual growth rate of 6.51 percent over this period as household establishments increased by 10.92 percent, while small establishments increased by 1.58 percent, says the Pakistan Bureau of Statistics (PBS).
The PBS released "SHMI 2015 report," which covers small scale industrial establishments and household manufacturing units in Pakistan, which are engaged in various types of manufacturing activities, and provides data on variables of significant economic importance such as employment, employment cost, and gross value added etc.
The PBS conducted first survey on SHMI in 1976-77 in urban areas of Pakistan only.
However, in second, third, fourth, and fifth rounds both rural and urban areas of Pakistan were covered, and these surveys were conducted in the years, 1983-84, 1987-88, 1996-97, and 2006-07, respectively.
The present survey is the sixth in the series with the reference year of 2015. SHMI survey was conducted in the randomly selected urban and rural areas of the four provinces of Pakistan. Therefore, erstwhile FATA, AJK, and Gilgit-Baltistan were excluded from the scope of the survey.
As such this survey is nationally representative; however, enumeration was not undertaken in the military restricted areas. The report shows that manufacturing establishments reported in 2015 are (1,242,124) as compared to (704,065) manufacturing establishment reported in SHMI 2006-07.
In the SHMI 2015, a total of 1,242,124 establishments were estimated in Pakistan with 195,189 in rural and 1,046,935 in urban areas. Out of total units, 787,964 (63.4percent) were household manufacturing units, while 454,160(36.6percent) were small manufacturing establishments.
The analysis reveals that household establishments have decreased in Balochistan province over the period of 1996-97 to 2006-07 but increases at higher rate between the periods of 2006-07 to 2015.
In overall SHMI units, all provinces registered positive growth rate in 2015 compared to 2006-07 survey with 5.04 percent in Punjab, 9.76 percent in Sindh, and 4.79 percent in Khyber-Pakhtunkhwa, and maximum growth of 30.57 percent in Balochistan.
In Balochistan, the household manufacturing establishments had increased with maximum growth rate of 32.52 percent followed by Sindh 15.93 percent, KP 8.72 percent, and Punjab 8.61 percent.
Pattern is different for small manufacturing establishments with growth rate of 23.72 percent, 1.77 percent, 1.21 percent, and 0.93 percent for Balochistan, KP, Punjab, and Sindh provinces, respectively.
The province-wise analysis shows that percentage of household units operated by individual ownership are: 95.41 percent in Punjab, 92.28 percent in Sindh, 97.56 percent in KP, and 99.38 percent in Balochistan province.
Likewise, the percentage of small establishments operated by individual ownership in Punjab has percentage of96.60 percent, Sindh 98.38 percent, KP 96.43 percent and Baluchistan 98.61 percent. The contribution to GDP (producers value) recorded in SHMI 2015 is Rs476,132 million, which was recorded as Rs104,332 million in SHMI 2006-07.
This indicates a fourfold increase over eight and half years. Further, estimated value added based on survey depicts an increase of 22percent (rebasing impact) when compared with the published figure of national accounts, the PBS, which is to the tune of Rs390.1 billion for the same period.
This increase could also be attributed to better coverage of this sector. Out of total contribution to GDP, ie, Rs476,260 million by all the SHMIs reported in the survey at Pakistan level, small manufacturing industries contribute Rs393,969 million with a percentage share of 39 percent and household industries contribute Rs82,289 million with a percentage share of 18percent. The value of fixed assets at the end of 2015 has been calculated as Rs81.98 billion.
The contribution of building and structure is maximum in GFCF with Rs52 billion (64percent) followed by machinery and equipment i.e. Rs28 billion, which is about 34percent of the total. The data on employment by type and size has revealed that there were as many as 2,695,130 workers engaged in small and household manufacturing establishments throughout the country.
Out of 2.69 million workers, 1.5 million (56percent) were working in household establishments, while 1.19 million (44percent) were engaged by small establishments. The comparison of employment size with that of SHMI 2006-07 reveals that the total number of persons engaged reported in SHMI 2006-07 was 17,48,389, which increased to 2,695,130 as reported in the SHMI 2015, thus, indicating an annual increase of 5.2 percent.
In the current survey, the data were also collected on type of ownership. Three categories i.e. individual ownership, partnership, and others were included in the questionnaire. Province-wise percentage distribution of persons engaged in all the units varies considerably, ranking the Punjab at top with 1,473,596 persons followed by Sindh 545,305, the KP 424,582, and Balochistan 251,647 persons.
This trend deviates slightly when data is decomposed by household and small establishments. The average number of persons engaged in household and small establishments is 1.9 and 2.63 persons, respectively. In SHMI 2006-07, the total production was recorded as Rs230,656 million, which increased to Rs859,265 million in SHMI, 2015 showing per annum increase of 16.7 percent over this period.
By arranging the 10 industries classified at 5-digit level in descending order according to their value of production, it has been observed that jewelry, goldsmiths Rs132,957 million has the lead among other industries in case of value of production, whereas, production per worker is highest for manufacture of prepared meals and dishes followed by jewelry.
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