- What is manufacturing?
Manufacturing is the process of turning raw material into finish or semi-finished goods.
- How do you define a manufacturing Sector?
Manufacturing sector comprises of two sub-sectors viz. Large-Scale Manufacturing and Small-Scale Manufacturing. Large Scale manufacturing covers the establishments registered under factories Act 1934 or qualifying for registration (having 10 or more employees) including Repair and Service Industries. Small Scale manufacturing covers all such manufacturing establishments not covered in Large Scale manufacturing.
- What is Census of Manufacturing Industries (CMI)?
CMI measures production and structural changes of large-scale manufacturing industries (LSM). It provides data on values of inputs and outputs, census value added, contribution to GDP, fixed assets, stocks, employment and employment cost and industrial taxes. It takes into account new industrial developments and captures new industrial products and establishments. It is used to develop new weights for Quantum Index of Manufacturing.
- What is meant by Quantum Index of Manufacturing Industries (QIM)?
The Quantum Index of Manufacturing Industries (QIM) is a measure used to assess the average change in production and performance of the manufacturing sector in an economy over a specified period.
- What is the timeliness of QIM?
QIM is computed on monthly basis and released with a time lag of 45 days.
- What is the base year for QIM?
Currently 2015-16 is used as a base year for QIM.
- How is QIM calculated?
QIM is calculated using data on the physical output (quantity) of manufacturing industries.
- How frequently is the QIM updated?
The QIM is typically updated on a monthly basis, providing regular updates on the performance of the manufacturing Sector.
- How data is collected for QIM or what are the data sources of QIM?
Data for QIM is collected on monthly basis from establishments having more than 10 employees by data source agencies the source agencies include Provincial Bureaus, Ministry of Industries and Production, Oil Companies & Advisory Councils (OCAC) and Ministry of Commerce.
- How establishment could be defined?
An establishment is an enterprise or a part of an enterprise that is situated in a single location that carries out a single activity or in which a productive activity accounts for the most of the value added.
- What is Industry?
An industry consist of a group of establishments engaged in the same or similar, kind of activities
- What is principal or primary activity in manufacturing?
The principal activity of a producer unit is the activity whose value added exceed that of any other activity.
- What is secondary activity in manufacturing?
The secondary activity is an activity of single producer in addition to the principal and whose output must be suitable for delivery outside the producer unit.
- What is the sampling unit of QIM?
The sampling unit for QIM is establishment.
- How Sample size for QIM has been drawn and allocated to data sources?
The Sample size for QIM has been drawn in the following ways:
- All establishments are included in sample for data collection that are fall in the domain of Ministry of Industries and Production and Ministry of Commerce
- For petroleum products, all refineries are included in sample. The data for petroleum products is collected by oil Companies Advisory council (OCAC)
- A handful sample has been drawn for those items that are in the domain of Provincial Government. Data for such items is collected by provincial Bureaux of Statistics
- For Specific Items such as garments, towel, furniture and football, the export quantity is utilized as proxy of indigenous production
- How is data aggregated for QIM?
Data from various sources is aggregated using appropriate statistical techniques to create a comprehensive dataset for calculating the index.
- How much weights used for QIM?
Total weights used for QIM is 78.37%.
- How many number of items used in compilation of QIM?
There are 123 items used in the compilation of QIM.
- Which classification/Coding scheme is used for QIM?
Pakistan Standard Industrial Classification 2010 derived from United Nations’ International Standard Industrial Classification of all Economic activities Rev.4 is used for the compilation of QIM.
- How many major industrial groups are covered in QIM?
QIM covers 22 major industrial groups of Large Scale Manufacturing Industries.
- How is the quantum Index of Manufacturing calculated from the secondary data?
The quantum Index of Manufacturing is calculated using a weighted average of the production of the manufacturing sector. For this Purpose, modified Laspeyers’ formula is used.
å (Qn/Qo ) x Wi
QIM = ———————- X 100
å Wi
Qn = Quantity Data for Current Month.
Qo = Quantity Data for Base Year.
Wi = Weight of the Item.
å Wi = Total Weight of All Items.
- How weights are developed/derived?
Weight are developed using the results of Census of Manufacturing Industries (CMI). Weights have been derived at two stages, the weight at industry level have been derived on the basis of Gross Value Added (GVA) of Large-Scale Manufacturing Industries (LSMI) at the basic prices. The total GVA for the LSMI is taken as 100 and percentage contribution of each industry has been considered as the weight of that industry. At the second stage, the weights have been derived at product level on the following lines: –
- In case, there was only one item to be selected from a manufacturing activity, the total weight of that activity has been assigned to the selected item.
- If more than one items have been selected from a manufacturing activity, then weights of the activity have been distributed among the selected items according to relative production value of the selected items in that activity.
- How often does rebasing take place?
QIM data is primarily used by National Accounts. Therefore, QIM is rebased after every 10 years and utilized in the rebasing of National Accounts.
- What are the common challenges in the data tabulation process for QIM?
Common challenges in the data tabulation process for QIM include data quality issues, missing data, data reconciliation, and dealing with outliers.
- What are the software tools commonly used in the compilation process for QIM?
MS EXCEL (a spreadsheet application) is used for the compilation/tabulation process for QIM.
- How is the accuracy of the quantum Index of Manufacturing ensured?
The accuracy of the quantum Index of Manufacturing is ensured through data validation, quality control checks and validation against other economic Indicators such as import exports and the interdependencies of sub-sectors within Manufacturing Sector and among other sectors of National Accounts.
- How is the quality of the tabulated data ensured for QIM calculation?
The quality of the tabulated data for QIM calculation is ensured through rigorous data validation, cleansing, and verification from the data sources on monthly basis.
- Can historical data be used in the calculation process for QIM?
Yes, historical data is often used in the calculation process for QIM to analyze trends and patterns in the manufacturing sector.
- What is data tabulation in the context of QIM?
Data tabulation in the context of QIM refers to the process of organizing and summarizing the secondary data obtained from various sources to calculate the index.
- What are the key steps involved in the data tabulation process for QIM?
The key steps involved in the data tabulation process for QIM include data collection, data validation, data cleansing, data aggregation, and calculation of the index.
- How is the tabulated data presented for reporting the quantum Index of Manufacturing?
The tabulated data for the quantum Index of Manufacturing is presented in the form of index numbers, time series charts, and analytical reports for public dissemination.
- What is the significance of the QIM?
The QIM provides valuable insights into the trends and developments within the manufacturing sector, helping policymakers and analysts make informed decisions.
- What are the key components of the QIM?
The key components of the QIM include data on production volumes, base year, weights assigned to different manufacturing activities based on their contribution to overall manufacturing output, production indices, and changes in the composition of manufacturing industries.
- How does the QIM differ from Index of Industrial Production?
The QIM does not differ from other manufacturing indices but it is a subset of Index of Industrial Production (IIP).
- What are the limitations of the QIM?
Limitations of the QIM may include data lags, potential inaccuracies in reporting, and challenges in capturing the full scope of manufacturing activities.
- How is the QIM used by policymakers and analysts?
QIM assess the health of the manufacturing sector, provide valuable insights into its trends and dynamics, identify areas for intervention, and monitor the impact of policy measures, enabling policymakers and analysts to assess the impact of changes in the physical output of manufacturing industries.
- How does the QIM reflect changes in consumer demand?
The QIM may reflect changes in consumer demand indirectly through shifts in production volumes and industry composition.
- Is the QIM a leading indicator of economic performance?
The QIM can serve as a leading indicator of economic performance, as changes in manufacturing output often precede broader economic trends.
- What are some potential challenges in interpreting QIM data?
Challenges in interpreting QIMI data may include data revisions, the impact of one-time events, and the need for contextual analysis of industry-specific factors.
- What role does the QIM play in economic forecasting?
The QIM can be a valuable input for economic forecasting models, providing insights into industrial production trends and their potential impact on overall economic performance.
- How can businesses use the QIM to inform strategic decisions?
Businesses can use the QIM to assess industry trends, identify potential growth opportunities, and benchmark their performance against broader manufacturing trends.
- How is the confidentiality of the collected data maintained during the compilation process of QIM?
Confidentiality of the collected data is maintained through strict data security measures and adherence to data protection regulations as the final report does not show the production figures of individual establishments.
- How can stakeholders access the tabulated data and quantum Index of Manufacturing results?
Stakeholders can access the tabulated data and quantum Index of Manufacturing results through official government publications, economic research reports, and online databases maintained by Pakistan Bureau of Statistics.
- What are the key objectives of the QIM?
The primary objectives of the QIM are to provide accurate and timely information on the performance of the manufacturing sector and to serve as a reliable indicator for policy formulation and decision-making.
- What are the implications of a positive QIM growth rate?
A positive QIM growth rate indicates an expansion in manufacturing output, which is generally associated with increased economic activity and overall industrial development.
- What role does the QIM play in monitoring industrial performance?
The QIM serves as a critical tool for monitoring the performance of different manufacturing industries, identifying sectoral trends, and evaluating the overall health of the industrial economy.
- Can the QIM be used to compare the performance of different manufacturing sectors?
Yes, the QIM allows for the comparison of the performance of various manufacturing sectors by providing a standardized measure of production volume and growth rates within manufacturing Sector.
- What are the limitations of the QIM as a measure of industrial performance?
The QIM may have limitations in capturing the quality and value-added aspects of production, as it primarily focuses on the physical volume of output.
- How does the QIM account for seasonal variations in manufacturing activity?
The QIM incorporates seasonal adjustments to account for the typical fluctuations in manufacturing output throughout the year, providing a more accurate representation of underlying trends.
- Is the QIM influenced by external factors such as global trade and market conditions?
Yes, the QIM is influenced by external factors such as global trade dynamics, market demand, and supply chain disruptions, which can impact manufacturing output.
- What are the implications of a declining QIM growth rate?
A declining QIM growth rate may indicate a slowdown or contraction in manufacturing output, which could have implications for economic growth, employment, and industrial investment.
- How can businesses and investors use the QIM for decision-making?
Businesses and investors can use QIM to assess the performance of specific manufacturing sectors, identify growth opportunities, and make informed decisions about production, investment, and market expansion.
- How does the QIM contribute to macroeconomic analysis and forecasting?
The QIM provides valuable input for macroeconomic analysis and forecasting by offering insights into the contribution of the manufacturing sector to overall economic growth and industrial trends.
- Can the QIM be used to assess the competitiveness of domestic manufacturing industries?
Yes, the QIM can be used to assess the competitiveness of domestic manufacturing industries by comparing their production performance with global benchmarks and industry standards.
- What are the key challenges in compiling and interpreting the QIM data?
Challenges in compiling and interpreting QIM data include data accuracy, coverage of all manufacturing sub-sectors, and the need for consistent methodologies across different time periods.
- How does the QIM check/examine government policies and initiatives for industrial development?
The QIM provides essential data for evaluating the effectiveness of government policies and initiatives aimed at promoting industrial growth, productivity improvement, and technological innovation.
- Where can I access the latest QIM data and analysis?
The latest QIM data and analysis are typically available through government statistical agency, Pakistan Bureau of Statistics and other publications.
Keywords for QIM
- Production Index
- Manufacturing Index
- Weights
- Quantum Index
- Growth Indicator
- Industrial Indicator
- Growth
- Positive Growth
- Negative Growth
- Gross Value Added (GVA)
- Census Value Added
- Census
- Manufacturing
- Industries
- Economic Indicator
- Data Sources
- Stakeholders
- Industrials Statistics
- Manufacturing Statistics
- Gross Domestics Product (GDA)
- Economy
- Production
- Quantities
- Volume
- Values
- Input, Output
- Fixed Assets
- Stocks
- Employment
- Employment Cost
- Industrial Taxes
- Trade Margin
- Establishment
- Enterprise
- Factory
- Primary Activity
- Auxiliary activity
- Rebasing
- Change of Base
- Industrial Frame
- Industrial Classification
- Capital Stock
- Producer Price
- Basic Price
- Current Price
- Fixed Price
- Subsidies Taxes
- Direct Tax
- Indirect Tax
- Sale Tax
- Market Price
- Factor Cost
- Industrial Cost
- Non Industrial Cost
- Investment
- Own Account
- Pakistan Standard Industrial Classification PSIC 2010
- ISIC
- Non Response
- Industrial Unit
- Ratio
- Rate
- Overhead Expenses
- Companies
- Working Proprietor
- Unpaid Family Worker
- Value of Material
- Receipt
- Deprecation
- Capital Consumption
- Wages and Salaries
- Gross Fixed Capital Formation (GFCF)
- Ownership
- Economic Entity
- Raw Material
- Intermediate Consumption
- Excise Duty
- Value Added Tax
- Growth Rate
