Islamabad chamber of Commerce and Industry shows concern for disappointing growth of Large Scale Manufacturing
ISLAMABAD: Significant growth of Large Scale Manufacturing (LSM) is essential for economic development. The ongoing energy crisis and high mark-up rates have been the major factors behind the sluggish performance of the LSM sector.
The large-scale manufacturing sector grew by only 1.14 percent during the fiscal year 2010-11 sharply declining from 4.9 per cent growth in previous fiscal year, reflecting overall weak performance of the economy, growth oriented measures were required to be taken to pull the ailing industrial sector out of crisis, Mahfooz Elahi, President, Islamabad Chamber of Commerce & Industry said in a statement.
He was reacting to the reports that the Quantum Index Number of LSM industries stood at 207.92 points in July-May period of fiscal year 2010-11 as compared to 205.18 points in July-May 2009-10 which was showing that LSM has performed below its potential.
ICCI President said that manufacturing sector should be given priority and special attention for its survival and sustainable growth. He said that manufacturing sector was bearing the brunt of the high interest rate and called upon the government for taking measures to give a boost to LSM growth.
He said that LSM has also suffered because of severe energy shortages and electricity tariff hike leading to cost escalation. He said that construction sector showed a 21 percent fall in its activity during the year and dragged the overall performance of the industrial sector.
Mahfooz Elahi said that Indian manufacturing went up at the rate of 8.6 and China’s manufacturing sector grew by 11 percent while grew only 1.14 percent in Pakistan. He was of the opinion that Pakistan along with the agriculture sector, attention must be given to manufacturing sector that would ultimately lead it towards economic progress.
ICCI President said government should also provide support for the establishment of engineering related industries and help the businessmen in taking part in international engineering exhibition to provide them the opportunity to know internal emerging markets of engineering products and its potential.
He said to achieve these objectives, State Bank of Pakistan and other public sector organizations in consultation with the private sector should develop a national plan for industrial growth.