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Unannounced load shedding, shortage of natural gas and water have caused a 13 percent constant decline of industrial production (large scale manufacturing) in Sindh during 2008-9, as compared to the last year productivity. Sources at the Sindh Bureau of Statistics told Business Recorder on Wednesday that the production of vegetable ghee/cooking oil declined and its production stood at 293656 MT due to closure of ten oil mills showing decrease of 8.54 percent.
However, the sugar production remained 976420 MT against the last year's 1553440 MT production due to shortfall of sugarcane by 30 percent and late crushing, they said. They said that a decrease of 2.66 percent was also observed in blending and packing of tea due to closure of Unilever Tea Mill that stopped functioning on September 1, 2008. The power outages and decrease in tea packing are also the main reason of low productivity, they added.
The production of printing paper has been decreased by 8.56 percent due to unannounced power outages and less demand of printing papers, they said, adding that the production of paints was also declined by 15 percent due to closure of Berger Paints and Buxly Paints factories.
They said the production of urea fertilisers was also decreased by 5.53 percent due to uncertainty in the local market and power crises and added that production of cycle tyre and tubes remained zero due to closure of Diamond Rubber Mill, the only largest company in Sindh.
The productivity of petroleum products also declined by 13.71 percent due to quality of imported crude oil and load shedding of electricity, they said. The production of jute textile declined by 91.42 percent as most of the mills were closed in the province, however, the production of cotton yarn was decreased by 7 percent due to closure of cotton mills and persisting power crises, sources further said.
The production of woollen textile was decreased by 16.96 percent as most of the woollen mills have been closed down in the province, while the production of leather was declined by 8.04 percent due to closure of manufacturing units in Sindh, they said. The production of air-conditioners was also decreased by 60.02 percent due to temporarily closure of a major producing unit of Dawlance Karachi.
The production of lamps also declined by 47.42 percent because the Philips Electrical Company has stopped its production due to increasing demand of imported energy savers, they said. The production of cigarette declined by 32.62 percent due to closure of Lackson Tobacco Karachi while the production of television (TV) sets decreased due to closure of SNH Industries, Philips Electrical Company etc.
The production of MS products was reduced by 28.89 percent due to electricity crises and closure of units. The electricity load shedding also badly affected the production of washing soap industry by 13.67 percent and the fans industry by 7.08 percent due to closure of one of the largest factory HM Ismail Company, Kotri.

Copyright Business Recorder, 2009

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