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ISLAMABAD: In what appears to be unexpected results, Pakistan’s large-scale manufacturing sector grew by 3.57 per cent in the first quarter of the current fiscal year over the last year partly because of rebasing of indexes used for measuring growth in the industrial sector.
The growth reflected in the officials’ statistics appears in contradictions to concerns of businessmen, who raised voices against shortages in power supply and higher input cost, which according to them reduced their profits.
Last year, the large-scale manufacturing (LSM) sector, which accounts for more than 70 per cent of industrial output witnessed sluggish growth but the impressive growth projected surprised the policy makers since August this year over the last year, suggest data of Federal Bureau of Statistics issued here on Wednesday.
On monthly basis, the growth in LSM was 5.14 per cent in September this year over the same month last year. If the statistics is true then the government will achieve the 4.2 per cent economic growth projected in the budget last. Even still the International Monetary Fund did not agree with these growth figures and forecast that the economy may grow by merely 2.6 per cent by end June 2012.
Major contribution towards the growth performance came from durables like growth in automobiles, external demand driven growth in textile group and leather products and some impetus from pharmaceutical and chemical groups.
In the electronic and electrical goods, production of deep freezers grew by 9.18 per cent, electric bulbs 18.64 per cent, electric tubes 23.33 per cent, electric fans 28.52 per cent and electric meters 13.36 per cent.However, switch gears production declined by 60.83 per cent, electric transformers 27.38 per cent, storage batteries 36.15 per cent, bicycles 33.13 per cent, television production 7.68 per cent and refrigerators 6.69 percent.
The textile sector, which has an adjusted weight of 32.6 per cent in the LSM basket, recorded growth in 2011-12 over the previous year. Only cotton yarn and cotton cloth (both semi-finished products) succeeded to improve with 1.12 per cent, 9.57 per cent. However, knitting wool declined by 5.55 per cent.
The best growth was witnessed in case of food, beverages and tobacco. The sector has adjusted weight of 19.1 per cent in LSM basket. Veg. ghee grew by 12.58 pc, cooking oil 3.24 pc, tea blended 34.74 pc and wheat 9.06 pc, beverages 11.06 pc and cigarettes 1.42 pc.
The sugar industry posted a growth of 6.05 per cent in July-September this year over the last year. Sugar has 5.5 per cent adjusted weight in the LSM basket. Petroleum sector, which has a significant adjusted weight of 6.9 per cent in LSM basket, has witnessed a positive growth of 13.19 pc.
Another important sector, which provides jobs in large numbers across the country, is the automobile sector. However, tractors production dropped by 69.12 pc, trucks 34.50 pc, buses 35.34 pc. But the production of jeeps and cars up by 4.18 pc, LCVs up by 10.82 pc and motor cycles 17.54 per cent, respectively.
