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Energy crisis slows LSM growth to 1.95% in 4 months

Energy crisis slows LSM growth to 1.95% in 4 months

ISLAMABAD: The large-scale manufacturing (LSM) sector has shown minor growth of 1.95 percent in four months (July-October) of the current fiscal year over the corresponding period last year mainly due to prevailing energy crisis in the country.
The industrial sector is not recording handsome growth during ongoing financial year due to the deteriorated power crisis prevailing in the country. In July 2014 the LSM grew by 1.14 percent that rebounded to 5.27 percent in August and 1.82 percent expansion was recorded in September. Meanwhile, it has posted growth of 1.82 percent in October.
The industrial growth had recorded growth of 1.95 percent due to growth in 12 categories of items in the month under review over the corresponding month of last year, reported the data of Pakistan Bureau of Statistics (PBS). The Quantum Index Number (QIM) of LSM industries stood at 113.95 points during first four months of the ongoing fiscal year 2014-15 as compared to 111.77 points of the preceding year, registering an increase of 1.86 per cent.
According to the figures of Pakistan Bureau of Statistics, major contribution towards positive growth in LSM performance in July-October 2014 was from textile 0.79 percent; food and beverages 1.32 percent; coke and petroleum products, 6.06 percent, electronics 8.86 percent, iron and steel products 16.68 percent, chemicals 6.15 percent, non-metallic mineral products 1.23 percent, rubber products 4.74 percent, engineering products 2.11 percent, pharmaceuticals 2.88 percent, automobiles 12.1 percent and leather products 2.3 percent.
However, some sector like wood products had shown negative growth of 79.84 percent, fertilizers 4.22 percent and paper and board 0.65 percent during the period under review.
In electronic and electrical goods, production of refrigerators recorded a positive growth of 11.07 percent; electric fans 2.59 percent, electric meters, 59.34 percent, electric transformers 181.25 percent, TV sets, 7.87 percent, storage batteries 7.69 percent and bicycles 20.67 percent during July-October period.
However, the production of deep-freezers declined by 9.58 percent; air-conditions 1.27 percent, electric bulbs 17.36 percent; electric motors 3.55 percent; switch gears 15.72 percent during the period under review over the same period last year.
In automobile sector, the production of trucks was up by 97.5 percent; tractors 60.60 percent; jeep and cars 14.09 percent; and motorcycles 1.35pc during July-October 2014 from the corresponding period of last year. However, production of buses was down by 30.2 percent and LCV’s 6.96 percent during the period.
It is worth here that Pakistan Bureau of Statistics (PBS) computes LSM figures on production data received from the Oil Companies Advisory Committee (comprising 11 items), Ministry of Industries and Production (36 items) and the Provincial Bureaus of Statistics (65 items).