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Definition

The Quantum index is designed to measure changes in physical out-put for the Large-Scale Manufacturing Industries. A significant change in the sources of data, coverage and weighting system of QIM is observed after CMI 2015-16). It is calculated according to internationally accepted standards and guidelines using weighted aggregative Laspeyers’ Formula with base year 2015-16

Sources of data: The production data used for computation of indices was previously received from Ministry of industries and production, Provincial Bureaus of Statistics and OCAC. After CMI 2015-16 two new sources were added which are Ministry of Commerce and Internal Source of PBS.

Weights: The weights have been derived on the basis of 2015-16 CMI value added at factor cost (gross value of production less industrial cost less indirect taxes plus subsidies) including the results of the non-response CMI survey.  In deriving the weights, the total value added for Pakistan has been taken to be 100 and the weights at industry level have been taken as percentage of this total, whereas weights at items level have been derived on the basis of their relative value of production in the industries to which these items belong.

Therefore, the index series which was previously based on 70.3% weights with base year 2005-06 now expanded to 78.37% of weights on the basis of CMI 2015-16.

Coverage: The new rebased QIM covers all subsectors of LSMI except for printing Sector. It now covers 2865 units and 123 items with base year 2015-16 as compared to 1648 units and 112 items in QIM with base year 2005-06.

Periodicity:   QIM is calculated on monthly basis.

Timeliness:  Not later than 6 weeks after the end of the reference period.

Statistical presentation

The QIM report is presented on monthly basis with proper comparison with the same period of the last year and the data is presented in tables with explanation in text format for the end users

Methodology

Data is collected from manufacturing establishments having 10 or more employees by the source agencies and supplied to PBS on monthly basis. PBS further made data cleaning, removing discrepancies and input in database for compilation. Compilation is done by the modified Laspeyre’s formula.

Industry Statistics section compiles Quantum Index of Large Scale Manufacturing Industries (QIM) on monthly basis. QIM measures the changes in production over time on monthly as well as cumulative basis. The weights presently used for the QIM were derived from the Census of Manufacturing Industries (CMI) 2015-16. Total 123 items with cumulative weight of 78.4% are being used for computation of QIM. The production data is collected from Oil Companies Advisory Council (OCAC), Ministry of Industries & Production (MOIP), Ministry of Commerce and Provincial Bureaus of Statistics (BOS) and Pakistan Bureau of Statistics (PBS) internal source.

QIM in brief

  1. The provisional quantum indices of Large-Scale Manufacturing Industries (LSMI) for August, 2023 with base year 2015-16 have been developed on the basis of latest data supplied by the source agencies. The indices for August 2022 and July-August 2023-24 along with growth are as follows: –
    • QIM estimated for August, 2023 is 117.0.
    •  The LSMI output increased by 2.52% for August, 2023 when compared with August, 2022 and 8.44% when compared with July 2023.
    • QIM estimated for July-August, 2023-24 is 112.44
    • Overall Large-Scale Manufacturing Sector has shown a growth of 0.50% during July- August 2023-24 when compared with the same period of last year.
  2. The main contributors towards overall growth of 0.50% are, Food (0.82), Tobacco (0.29), Textile
    (-4.01) Garments (5.16), Petroleum Products (0.78), Chemicals (0.18), Pharmaceuticals (2.02), Cement (1.45), Iron & Steel Products (-0.13), Electrical Equipment (-0.78) and Automobiles (-1.90), Paper & Board (-0.19) and Furniture (-2.33).
  3. The production in July-August 2023-24 as compared to July-August 2022-23 has increased in Food, Wearing apparel, Coke & Petroleum Products, Chemicals, Pharmaceuticals, Rubber Products, Non Metallic Mineral Products, Machinery and Equipment and Other Manufacturing (Football) while it decreased in Beverages, Tobacco, Textile, Iron & Steel Products, Electrical Equipment, Automobiles, Other Transport Equipment and Furniture.

Tables

Statistical Tables

Reports

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Definition : Consumer price index (CPI) measures the change over time in the prices of goods and services for consumption by households. The main purpose of the CPI with a base year of 2003 is; is to calculate the inflation rate by measuring the change in the prices of goods and services subject to consumption in the market. For this purpose, all final monetary consumption expenditures of households, foreign visitors and corporate population in the country are taken into account. This concept excludes the production of households for their own consumption from consumption expenditures and the relative rents valid for households.

Classifications: Individual Consumption Classification by Purpose (COICOP) was used in determining the weights and calculating the index, and these expenditures were grouped under 12 main groups and 43 subgroups. 404 items are included in the index.
 
International and regional guidance:  There is no significant difference between Turkey’s methodology and the relevant international and regional standards set out in EUROSTAT.

Source of weights:  Household Budget Survey conducted with approximately 15 000 households (3 years total 45 000) from all socio-economic groups annually, institutional population survey, tourism survey for the expenditures of foreign nationals in Turkey and expenditure and turnover information obtained from administrative records. It is calculated by expanding the National Accounts Household Final Consumption Expenditure data with the change rates.

For seasonal products, a constant weight approach is used.

The period to which the current weights belong is:  December of the year (t-1).
 In the CPI with a base year of 2003 = 100, all final monetary consumption expenditures made for the purpose of consuming goods and services domestically are taken as basis. In the index, prices are compiled from a total of 228 districts, including all 81 provincial centers. Within the scope of CPI, 564 710 prices from 27 411 workplaces are compiled monthly and 5 246 tenants are followed within the scope of the index. The number of workplaces and prices may vary throughout the year depending on the seasonal structure. 

Population coverage:  Population coverage of the index; It is determined as the total population living in Turkey, without any discrimination based on income groups or geographical regions.

Geographic coverage:  All domestic final monetary consumption expenditures of households, foreign visitors and corporate population were taken into account.

FPrice coverage:  The price coverage of the index is determined as purchase prices. Prices are determined as cash payments including taxes, and installment sales or negotiated prices are not taken into account.

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Plot # 21, Mauve Area, G-9/1, Islamabad, Pakistan

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