KARACHI, June 4: Businessmen and industrialists have sounded a note of caution over deteriorating health of the country’s economy. In their reaction to the Economic Survey 2005-2006 on Sunday, they said in practical terms the figure of 6.6pc GDP growth rate in 2005-06 looked exaggerated. They said the economic survey was basically a fudging of figures and the business community was more interested in budgetary measures to be announced on Monday.

Site Association of Industry Chairman Ameen Bandukda told Dawn that the most worrisome flashback of the economy during the last nine months was the declining manufacturing output and low agricultural growth which was an alarming sign for the future economic growth.

“In sharp contrast, the services sector relating to finance and insurance, retail and wholesale trade, transport and communication, etc., posted an impressive growth of 8.8pc in 2005-2006 as against eight per cent recorded last year. Large-scale manufacturing and agriculture sectors should have recorded positive growth in the last nine months as compared to the service sector,” he said.

He said banks, insurance and leasing companies made roaring profits but they had not passed on profits to their clients.

Mr Bandukda said trade deficit had swelled to $10 billion, which was also a dangerous sign and resulted in the increase in imports of non-productive items.

“The government should think seriously as to why industrial manufacturing output and agriculture have missed their targets and come out with some package to achieve the growth next year. These sectors are job-oriented,” the Site chairman added.

The agriculture sector grew by only 2.5pc as against the target of 4.2pc and last year’s growth of 6.7pc, with major crops and forestry registration a negative growth of 3.6 and 5.7pc, respectively.

Manufacturing, the second largest sector of the economy, recorded a growth of 8.6pc as against the target of 12pc and last year’s growth of 12.6pc.

F.B. Area Association of Trade and Industry Chairman Rehan Zeeshan expressed doubt about achieving the 6.6pc GDP growth rate in 2005-06 when key sectors like manufacturing and agriculture had shown a dismal performance. Besides, strikes and poor law and order situation in the last one year also hit the industrial output, especially in Karachi.

Mr Zeeshan said the economy was likely to show an average performance in the next fiscal year unless some measures were announced to ascertain the reasons behind the fall in manufacturing and agriculture outlook.