ISLAMABAD  - The improved power supply to industries is giving positive outcome as Large Scale Manufacturing (LSM) has posted a growth of 5.23 percent in five months (July-November) of the current fiscal year 2013-14 from the period of year ago.

The latest figures of Pakistan Bureau of Statistics showed that Quantum Index Number (QIM) of LSM industries stood at 111.03 points during July-November 2013-14 as compared to 105.51 points of the corresponding period of previous year, showing an increase of 5.23 percent. Meanwhile, on monthly basis, the LSM grew by 3.41 percent in November 2013 over the same month last year.

The government has claimed that industrial sector’s growth could be attributed to improved power supply to industries. Finance Minister Senator Ishaq Dar several times had said that LSM’s growth is due to clearance of circular debt, which resulted in generation of additional 1700-megawatt electricity. Similarly, the government has decided to provide gas supply to the industries despite its severe shortage in the country.

It is worth mentioning here that government has set 4.4 percent growth target for LSM sector during ongoing fiscal year. However, economists are of the view that target could be achieved if government provides power supplies to the industries in remaining months of the year.

The PBS data showed that 11 categories of the items have recorded growth during the period under review that resulted in handsome growth in LSM. Major contribution towards positive growth in LSM in July-November 2013-14 was from textile 2.05 percent, food and beverages 7.71 percent, coke and petroleum products 8.83 percent, paper and board 19.55 percent, fertilizers 32.82 percent, electronics 18.88 percent, iron and steel products 4.36 percent, leather products 12.89 percent, chemicals 3.2 percent, non-metallic mineral products 0.14 percent and rubber products 0.13 percent.

However, four categories of the items have shown negative growth included wood products 11.42 percent, engineering products 23.51 percent and automobiles 3.26 percent and pharmaceutical1.15 percent during the period under review.

The Quantum Index Numbers (QIN) of Large Scale Manufacturing Industries has been computed in the PBS on the basis of latest production data of 112 items received from various sources i.e. Oil Companies Advisory Committee (OCAC), Ministry of Industries & Production and Provincial Bureaus of Statistics. The OCAC supplied the data of 11 items, the Ministry of Industries & Production supplied the data of 36 items and Provincial Bureaus of Statistics provided data for 65 items.

According to the PBS figures, OCAC group growth went up by 0.66 percent during the first five months of the ongoing financial year; Ministry of Industries registered a growth of 3 percent and provincial BOS showed growth of 1.57percent in July-November period of 2013-14 against the same period of the last year.