December 14, 2006	Thursday	Ziqa'ad 22, 1427

ISLAMABAD, Dec 13: Pakistan's industrial production grew by 9.70 per cent in the first quarter (July-September) of the fiscal year 2006-07 from a year earlier, showing a dismal performance of the production sectors, particularly in electronics, vegetable ghee and petroleum products.

Official data compiled by Federal Bureau of Statistics (FBS) and released here indicated that the leading factories, mines and oil products showed low production during the period under review over the same period of last year.

The average output of 11 leading oil products dropped by 9.49 per cent during the July-Nov of 2006 over the last year. On month-to-month basis, the production of oil companies dipped 5.39 per cent in September over the same month last year.

However, the average growth in production of 31 industries recorded 11 per cent during the first quarter of the current fiscal over the last year. The output of 37 industries in the four provinces was up by 11.31 per cent during the period under review.

Director Pakistan Institute of Development Economics (PIDE) Dr Nadeem ul Haq told Dawn that slow down in the industrial output was the outcome of the government policy to curtail the demand. He said that it was a conscious decision of the government to raise the interest rates in a bid to control the inflationary pressure in the economy.

Mr Haq said that even in America the interest rates were raised last year, which he said resulted into slow down in the economy. He said that Pakistan enjoyed high growth during the last two to three years, which he said, now necessary to slow down relatively in the current fiscal year.

Industry-wise production analysis showed that production of jet fuel declined 1.57 per cent during the period under review, kerosene oil 6.40 per cent, motor spirits 6.64 per cent, high speed diesel 15.60 per cent, diesel oil 2.44 per cent, furnace oil 12.73 per cent, lubricating oil 1.79 per cent and petroleum products 5.05 per cent.

Production of soda ash fell by 1.75 per cent, nitrogen fertilizer 3.50 per cent, phosphoric fertilizers 7.75 per cent, coke (Pakistan steel) 29.9 per cent during the first quarter of the current fiscal over last year.

However, the production of cigarettes was up 1.26 per cent, cotton yarn 13.32 per cent, cotton cloth 14.25 per cent, jute goods 11.05 per cent, paper and paper board 7.68 per cent, cement 16.38 per cent, steel products 14.47 per cent during the period under review. Production of vegetable ghee declined 0.37 per cent in July-Sept 2006, tea blended 8.65 per cent, wheat and grain milling 1.09 per cent, woollen and carpet yarn 7.13 per cent, plywood 0.79 per cent, liquids 2.60 per cent, hydrochloric acid 6.16 per cent, sulphuric acid 4.71 per cent, safety razor blades 1.83 per cent.Among the electronics goods, the production of deep freezers declined 9.78 per cent, electric bulbs 10.38 per cent, electronic fans 9.08 per cent, electric meters 19.89 per cent, television sets 31.32 per cent and bicycles 11.37 per cent during the July-Sept 2006.

The production of beverages was up 28.32 per cent during the first fiscal year over the last year, paints and varnishes 22.80 per cent, matches 38.97 per cent, motor tubes 23.94 per cent, diesel engines 31.72 per cent, sugarcane machines 91.43 per cent, power looms 38.10 per cent, air-conditioners 218.37 per cent and switch gears 132.01 per cent.