ISLAMABAD, March 26: The production of automobile and industrial items drastically reduced during first half of the current fiscal, though overall large scale manufacturing posted around 3.7 per cent growth compared with the corresponding period last year.

The production of industrial items like cigarettes, jute goods, chip board, soda ash, ammonium nitrate, di-ammonium, phosphate, glass sheet, cement, coke, pig iron/H metal, cast/rolled billet, H.R coils/plates, C.R coils, galvanized products, jeeps, trucks, buses and tractors declined during first six months period of the current fiscal.

The half-yearly (July-January 2001) figures compiled by the government suggest that major industrial items like sugar, cotton yarn, cotton cloth, paper, paper board, caustic soda, urea, nitro phosphate, super phosphate, motor cycles, bicycle, motor tyres and tubes and cars showed rising trend when compared with same period last fiscal.

The production of jeeps, trucks, buses and tractors declined by 22.32 per cent, 23.01 per cent, 40,64 per cent and 26.24 per cent, respectively, in July-January 2001-02 against corresponding period last year. The jeep production declined due to reduced purchases by the government and public sector agencies as a result of budgetary constraints. The fall in buses and trucks production was, however, due to recession in the market and no new induction of buses took place under the urban transport scheme. Reduction in tractor production has been attributed entirely to reduced loan advancement by the Agricultural Development Bank of Pakistan (ADBP).

The car production stood at 21,618 in first six months of the current fiscal against 21,351 same period last fiscal, showing a nominal improvement of 1.25 per cent, while jeep production dropped from 327 last fiscal to 254 during first six months of the current fiscal. Trucks production reduced to 425 from 552 last year, showing a reduction of 23 per cent.

Similarly, bus production also came down by 40.64 per cent to 523 from 881 last year. Tractors production also reduced to 11,503 from 15,596 last year, down by 26.24 per cent.

The production of jute goods during the period amounted to 41,146 tons as compared to 53,783 tons over the corresponding period last fiscal, showing a decline of 23.50 per cent. This was because of lay-off by management in Crescent Jute Products Ltd, due to non-availability of raw material and financial problems since July 2001, and shortage of raw material and labour problem in United Jute Limited besides Punjab government’s decision to restrict wheat packing in jute bags. The production of coke pig iron/H metal, cast/rolled billet, H.R coils/ plates, C.R coils and galvanized products during the period under review declined by 2.40 per cent, 5.66 per cent, 2.80 per cent, 7.43 per cent, 6.78 per cent and 38.99 per cent, respectively, against corresponding period of last fiscal.

The cement production in July-January 2001-02 has been 5.59 million tons against 5.914 million tons during corresponding period last fiscal, showing a shortfall of 5.47 per cent. Reasons include slump in the market and resultant low demand.

The production of ammonium nitrate & di-ammonium phosphate in first six months remained 190,000 tons and 66,000 tons, respectively, as compared to 213,000 tons and 178,000 tons, respectively, same period last fiscal, showing a shortfall of 10.82 per cent and 62.63 per cent, respectively.

This was mainly because Pakarab Fertilizer Multan plant remained closed during the whole month (around 774 hours) of January 2002, due to curtailment of natural gas by SNGPL and then 169 hours in July-September 2001.

DAP production has been suspended since October 23, 2001 at FFC-Jordan due to continuous fall of international DAP prices and negative impact on the local selling price of DAP coupled with increase in import cost of phosphoric acid due to exchange rate fluctuation also led to negative DAP contribution margins.

The production of glass sheet in July-January 2001-02 has been 2.8 million sq. metre against 3.2 million sq. metre same period last fiscal, a shortfall of 14.32 per cent.