Industrial output posts 5.05% negative growth during Jul-Oct

[Naveed Yaseen]

By Tanveer Ahmed
KARACHI: The industrial output continued to show downward trend during the first four months of current fiscal year, as it posted negative growth of 5.05 percent during the said period over the corresponding period last year, according to figures released by Federal Bureau of Statistics.

During the July-October period of this financial year, the almost all the sub-sectors of the large-scale manufacturing deteriorated due to a host of factors —energy crisis to decrease in external demand—that negatively impacted the local production. Being the important and major job creation sector, the declining trend in the industrial production has been causing numerous problems in reviving the economy, which is in gloom and doom due to both external and domestic woes.

According to Federal Bureau of Statistics, the industrial production also dropped by 2.17 percent during the month of October compared to the corresponding month of previous year. State Bank of Pakistan (SBP) in its 1st quarterly report for the current fiscal year also attributed the disappointing outcome in this sector to of a number of factors including: severe energy shortages, deterioration in domestic law and order situation, impact of pass through of international oil prices, rupee depreciation, and most importantly, weak external demand on the back of global recession and slowdown in domestic demand . Textile sector in particular was jolted by these shocks.

“This situation is leading towards closure of more and more industrial units and is rendering the workforce jobless,” industrialists said. “The industry is back in intensive care,” they lamented. The industrial growth has seen a steady decline in the last three years as it has plummeted to 8.8 percent in 2006-07 from a peak of 19.9 percent in the 2004-05.

The petroleum sector posted 5.95 percent negative growth during period under review. The production of jet fuel oil declined by 13.13 percent, motor spirits 6.44 percent, diesel oil 25 percent, furnace oil 7.39 percent, lubricating oil 2.28 percent, jute batching oil 9.15 percent, solvant naptha 6.98 percent, LPG 20.33 percent, kerosene oil 7.07 percent and other petroleum products 14.43 percent. In petroleum group, only high-speed diesel posted 1.22 percent growth during the period under review. In Food group, the production of vegetable ghee was down by 14.43 percent, cooking oil 7.93 percent, wheat & grain milling 11.55 percent, beverages 8.51 percent whereas the production of tea blended was up 9.64 percent and starch and its products 15.93 percent.

The production of buses, jeeps, cars and motorcycles decreased by 41.53, 42.49 and 9.24 percent, respectively. The production of TV sets decreased by 17.53 percent, bicycles 10.92 percent and deep freezers 27.15 percent. The production of cement was up by 1.55 percent whereas cotton cloth remained flat. The coke production by Pakistan Steel was up by 27.14.

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