ameer219
FULL MEMBER
- Joined
- Jan 30, 2010
- Messages
- 977
- Reaction score
- 3
- Country
- Location
LSM registers 4.71pc growth in 11 months of FY10
Tuesday, July 20, 2010
By Shahnawaz Akhter
KARACHI: The industrial production in the large-scale manufacturing (LSM) registered 4.71 percent growth during the first 11 months of FY10 over the corresponding period of 2008/09, according to the official data released on Monday.
According to the Federal Bureau of Statistics (FBS) data the index of the provincial bureau of statistics has shown an increase of 9.23 percent and the production under the Industries Ministry grew by 3.14 percent.
However, petroleum production by the Oil Companies Advisory Committee (OCAC) fell by 7.4 percent, it said. Economists attributed the LSM growth to economic recovery that increased the demand for consumable products in the local market, as well as export products for global markets.
The FBS computes the quantum index number of LSM on the basis of production data of 100 items received from sources, ie, OCAC, Industries Ministry and production of provincial bureau of statistics. The OCAC provides data of 11 items, Industries Ministry 35 items and provincial bureau of statistics supplied data for 54 items.
The shocks of political uncertainty and the energy crisis has badly affected the industrial production growth and declined to six years low by 8.2 percent in 2008/09.
The negative growth in oil production mainly recorded in items of kerosene, diesel, furnace oil and jute batching oil, which declined by 21.76 percent, 21.75 percent, 19.09 percent and 17.50 percent, respectively.
Analysts said that the production activity of petroleum was negatively affected by the circular debt issue. Strained cash flow constrained the full operation of refineries with a decline in the volume of crude oil imports.
As a result, refined petroleum products were imported to fulfill domestic requirements, the analysts said.
The major component in the Industries Ministry is automobile sector as production of motorcycles, jeeps and cars, tractors and trucks grow by 53.74 percent, 41.93 percent, 21.19 percent and 11.32 percent.
However, steel sector under the head registered negative performance during the period. The production of coke by Pakistan Steel, pig iron, billets and sheets fell during the period under review.
The impact of the financial crunch in Pakistan Steel Mills (PSM) was a result of huge losses it incurred last year. As a result, PSM has not been able to arrange import of basic raw materials, iron ores and coal, as per its requirement, according to the Economic Survey of Pakistan 2009/10.
The provincial bureau of statistics data revealed that more than half of items under this head registered improvement. The survey already pointed out that the sub-groups within the LSM depicted improvement from the previous year with industries producing consumer and intermediate goods being the main beneficiaries.
An economist at the Trade Development Authority of Pakistan (TDAP) said that the economy recovered slightly during the last fiscal year after setback of the preceding year due to political uncertainty in the country and global recession. Curtailing electricity shortfall still is a challenge for the government to improve industrial production output, the economist said.
LSM registers 4.71pc growth in 11 months of FY10
Tuesday, July 20, 2010
By Shahnawaz Akhter
KARACHI: The industrial production in the large-scale manufacturing (LSM) registered 4.71 percent growth during the first 11 months of FY10 over the corresponding period of 2008/09, according to the official data released on Monday.
According to the Federal Bureau of Statistics (FBS) data the index of the provincial bureau of statistics has shown an increase of 9.23 percent and the production under the Industries Ministry grew by 3.14 percent.
However, petroleum production by the Oil Companies Advisory Committee (OCAC) fell by 7.4 percent, it said. Economists attributed the LSM growth to economic recovery that increased the demand for consumable products in the local market, as well as export products for global markets.
The FBS computes the quantum index number of LSM on the basis of production data of 100 items received from sources, ie, OCAC, Industries Ministry and production of provincial bureau of statistics. The OCAC provides data of 11 items, Industries Ministry 35 items and provincial bureau of statistics supplied data for 54 items.
The shocks of political uncertainty and the energy crisis has badly affected the industrial production growth and declined to six years low by 8.2 percent in 2008/09.
The negative growth in oil production mainly recorded in items of kerosene, diesel, furnace oil and jute batching oil, which declined by 21.76 percent, 21.75 percent, 19.09 percent and 17.50 percent, respectively.
Analysts said that the production activity of petroleum was negatively affected by the circular debt issue. Strained cash flow constrained the full operation of refineries with a decline in the volume of crude oil imports.
As a result, refined petroleum products were imported to fulfill domestic requirements, the analysts said.
The major component in the Industries Ministry is automobile sector as production of motorcycles, jeeps and cars, tractors and trucks grow by 53.74 percent, 41.93 percent, 21.19 percent and 11.32 percent.
However, steel sector under the head registered negative performance during the period. The production of coke by Pakistan Steel, pig iron, billets and sheets fell during the period under review.
The impact of the financial crunch in Pakistan Steel Mills (PSM) was a result of huge losses it incurred last year. As a result, PSM has not been able to arrange import of basic raw materials, iron ores and coal, as per its requirement, according to the Economic Survey of Pakistan 2009/10.
The provincial bureau of statistics data revealed that more than half of items under this head registered improvement. The survey already pointed out that the sub-groups within the LSM depicted improvement from the previous year with industries producing consumer and intermediate goods being the main beneficiaries.
An economist at the Trade Development Authority of Pakistan (TDAP) said that the economy recovered slightly during the last fiscal year after setback of the preceding year due to political uncertainty in the country and global recession. Curtailing electricity shortfall still is a challenge for the government to improve industrial production output, the economist said.
LSM registers 4.71pc growth in 11 months of FY10
