KARACHI - SITE Association of industry (SAI) has raised its concerns over the recent figures released by the State Bank of Pakistan about a fall in Large-scale manufacturing (LSM) growth, saying the data doesnt depict the true image of the industrial economy. In a statement, issued on Monday, Chairman SAI Abdul Wahab Lakhani said apparently the picture is better in terms of export revenues which are primarily due to the increase in commodity prices like cotton but this increase is not in volume terms In real terms production have curtailed and resulted in de-industrialisation of the country in the last 2-3 years, he said. He further said de-industrialization is also a direct result of deteriorating law and order situation in the country especially in Karachi which is the hub of industrial activity and drives largest portion of government revenue and employment generation. We are de-industrialising ourselves as industrial development has not been prioritised with policymakers. This is evident from the constantly rising interest rates and energy costs. They referred to the anticipated increase of 5.5 per cent in the power tariff and up to 16 per cent in the petroleum prices anytime soon. Also constant upward pressure on lending rates has accelerated the process of industry closure. They blamed losses of 300 billion by the State Owned Enterprises (SOEs) and mismanagement by economic and political managers for increased budget deficit which in turn is driving inflation printing money and subsequently fuelling inflation and interest rates. The importance of industrial growth is significant in any economy as it has a positive effect on agriculture, commerce, construction, finance and other service sub- sectors. The industrial sub-sectors have strong forward linkages with all segments of the national economy. Also wide spread industrialization addresses poverty and improves law and order especially in the metropolitan areas. They urged the government to take immediate steps for improvement in law and order situation in the city, arresting energy cost and making energy available to all parts of the country to give relief to the sector and arrest industrial deceleration in order to sustain the capacity of employment generation and foreign exchange earning. Considerable reduction in key policy rate is also the need of the hour to stimulate the industrial sector.