LSM growth down 8.49pc

ISLAMABAD - Large Scale Manufacturing (LSM) growth declined by 8.49 per cent during the first eleven months (July-May) of the last financial year as compared to the corresponding period of 2007-08. This decline in growth can be attributed to the acute energy outages, weak security environment and tight monetary policy. Federal Bureau of Statistics (FBS) released the Quantum Index Numbers (QIN) of LSM on Thursday showing a negative trend of 8.49 per cent during July-May of the year 2008-09. Quantum Index Numbers (QIN) of LSM stood at 195.71 points in the period under review as compared to 213.87 points in the corresponding period of 2007-08. While in the month of May 2009, LSM decreased by 11 per cent as compared to that during the same month in 2008. The QIN shows the industrial productivity of 100 items received from different sources, for example, Oil Companies Advisory Committee (OCAC), the Ministry of Industries and Production and Provincial Bureaus of Statistics. The OCAC supplied the data of 11 items, the Ministry of Industries and Production provided data of 35 items and Provincial Bureaus of Statistics provided data of 54 items. Main contributors to the decline in the manufacturing sector are severe energy crisis, deterioration in domestic law and order situation, rupees plunge against the US dollar and most importantly, weak external demand in the wake of global recession coupled with slowdown in domestic demand. The data for petroleum products compiled by OCAC showed a negative growth of 8.90 per cent. All the petroleum products including jet fuel (6.03), kerosene (22.46), motor spirits (3.28), high speed diesel (7.42), diesel oil (27.87), furnace oil (7.48), lubricating oil (4.75), jute batching oil (5.09), solvent naphtha (17.91), petroleum products (12.78) and LPG (21.81) registered a negative growth when compared with the corresponding period, said the FBS data. Ministry of Industry index registered a negative growth of 8.33 per cent comprising 35 main industries in QIN of large-scale manufacturing. The industries showing positive growth include, cigarette (11.24), jute goods (7.29), sacking (32), paperboard (3.80) phosphate fertiliser (30.66), glass plates and sheets (12.69), cement (5.54), coke and Pakistan steel (45.27) and tractors (11.91). The industries showing negative growth are sugar (32.53) per cent, cotton yarn (0.14), cotton cloth (0.05), nitrogenous fertilizer (0.77), soda ash (2.40), caustic soda (0.66), pig iron (18.15), billets/ingots (32.67), trucks (36.70), buses (50.80), jeeps and cars (49.47), and motorcycles (16.46), the figures said. The industries in FBS data showing positive growth include, starch and its products (5.72), beverages (0.38,) sole leather (52.75), footwear (16.08), cotton (ginned) (1.41), plywood (38.48), tablets (0.55), liquid (1.77), capsules (3.91) and injections (7.98) Similarly, the industries showing negative growth include vegetable ghee per cent 4.83, cooking oil (1.17), tea blended (2.41), wheat and grain milling (0.25), beverages (4.06), woolen & carpet yarn (18.70), knitting wool (16.65), upper leather (8.88), ointments (0.37), Galenicals (100), toilet soap (15.84), sulphuric acid (5.84), chlorine (9.16), synthetic acid (6.80) and cycle tyre (27.91).

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