LSM growth declines to 5.57pc in July-Nov

ISLAMABAD - Large Scale Manufacturing (LSM) growth has declined to 5.57 per cent during the first five months (July-November) of the current financial year due to economic slow-down and high interest rates and poor law and order situation. Federal Bureau of Statistics (FBS) released Quantum Index Numbers of LSM Industries on Thursday showing a negative trend of 5.57 per cent during the July-November of current fiscal year as compared to same period of last fiscal year. Quantum Index Numbers of LSM Industries stood at 190.77 points in first five months of the current fiscal year as compared to 202.02 points in the corresponding period of the previous year. Official provisional statistics of Quantum Index Numbers of Large Scale Manufacturing Industries (QIM) of FBS depicting the production of major industries in the country have not been growing. Quantum Index Numbers show the industrial productivity of 100 items received from different sources ie the Oil Companies Advisory Committee (OCAC), the Ministry of Industries & Production and Provincial Bureaus of Statistics. The OCAC supplied the data of 11 items, the Ministry of Industries & Production of 35 items and Provincial Bureaus of Statistics provided data of 54 items. The major share in present negative growth has contributed by OCAC as during July-November 2008, Oil Companies Advisory Committee index declined by 7.52 per cent to 163.02 points from 176.28 points while, the Ministry of Industries index dipped by 6.37 per cent to 186.53 points from 199.22 points of the corresponding period of the last year. The LSM growth during the month of November in the current financial year also registered a decline of 7.53pc, compared to the same period of the last year, which stood at 188.80 points in Nov against 204.19 points of same period of last year. "Economic slow-down, poor law and order situation, high interest rates and shortage of utilities are the major contributors in the slow growth of LSM," economists said while adding that it is expected that LSM would be in negative during the Financial Year of 2009. The production of petroleum products has decreased by 7.52pc during July-Nov. In addition, production of cigarettes, Jute goods, phosphorus fertilizers and tractors registered a growth of 6.66pc, 3.33pc, 22.62pc and 3.81pc respectively. Similarly, soda ash production declined by 3.12 per cent, pig iron by 13.46 per cent, buses by 45.35 per cent, motorcycle by 13.74 per cent and trucks by 11.62 per cent. Performance of the manufacturing sector was impressive during last five years, but due to poor law and order situation, prevailing power crisis and negative economic indicators pushed the LSM growth into negative zone.

ePaper - Nawaiwaqt