Large Scale Manufacturing (LSM) has registered a dismal growth of 4.46 per cent during July-December 2007-08 against 12. 5 per cent projected target for the year.
The industry and Federal Bureau of Statistics (FBS) that collected and released the data Monday on Quantum Index Numbers for Large Scale Manufacturing Industries (QIM) said energy crisis coupled with political instability were major reasons of decline in growth.
With a 2.44 per cent decline in July-December, the LSM growth dipped to 4.46 per cent from 6.9 per cent during July-November 2007-08 as major industrial units remained closed due to power crisis, said an official that compiles data on LSM.
Power and gas crises were responsible for such a sharp drop in growth, he added.
The next month statistics, July-January 2007-08, may be even more dismal due to political turmoil the country went through following the assassination of Benazir Bhutto on December 27.
The government may not be able to achieve projected targets given the current 4.46 percent growth of LSM during the first half of the current fiscal and prevailing political and energy crises that have almost paralysed the industrial activities.
LSM is projected to grow by 12.5 percent in the fiscal 2007-08 against 8.8 percent of last year, the Quantum Index Number (QIM) on LSM released by the FBS showed that the growth may remain far less than the projected target.
The 20.62 percent growth in sugar, 18.21 percent in cement and some contribution by auto sector led to some growth in LSM. Within automobiles, buses registered 15.15 percent growth, motorcycle 25.20 percent and LCVs 16.96 percent.
Among petroleum products, jute batching oil registered 15.08 percent growth, solvan Naptha 9.36 percent, furnace oil 8.23 percent, high speed diesel 13.17 percent, motor spirit 7 percent with over all petroleum products growth of 6.15 percent.
The steel sector was most hurt by the energy crisis and political uncertainty and registered a negative growth of 7.25 percent with production of pig iron down by 1.26 percent, billets/igonts by 3.14 percent and CR sheets, strips, coil and plates by 12.93 percent. Production of jet fuels declined by 12.68 percent during the period under review, diesel oil 11.29 percent, LPG 2.97 percent and other petroleum product by 9.02 percent.