20000220

13 items, production declined in 1999

TAHIR DHINDSA

ISLAMABAD: Out of the list of 37 selected items, production of 13 items fell sharply during July-December 1999, against the corresponding months of 1998, whereas 24 other items registered growth.

According to official sources, the production of those items fell during the period which are considered important for the overall industrial activity. The sources termed low demand and over all depression as the main reason behind the fall in production.

The items, which registered growth in their production, were topped by tractors, which grew by 102.98 percent during the first two quarters of the financial year 1999-2000. Whereas, the maximum fall in growth was registered in light communication vehicles (LCVs) which fell by 58.25 percent.

The production of jute goods, glass sheets, motor tubes, motor cycles, cigarette, jeeps, galvanised steel and cars declined during July-December 1999, against July-December 1998.

During the period only 2201 LCVs were produced as against the 5,272 produced during the corresponding period of the last year.

The second biggest fall was in the production of jeeps. Their production fell from 281 jeeps during July to December 1998, to 153 jeeps during July-December 1999. Motor tubes registered a fall in production to the tune of 28.3 percent in the same period.

The cigarette production in July-December 1999, was 21,096 million against 25,734 million in July-December 1998, showing a decline of 18.02 percent. The main reason was reduction in market size due to influx of tax/duty-evaded brands as well as free availability of counterfeit brands.

Similarly, production of jute goods in July-December 1999, was 39,332 tonnes as against 45,326 tonnes in the corresponding period of last year, showing a reduction of 13.22 percent. The reason for decline was poor demand and poor arrangement with banks for working capital.

The production of phosphatic fertilizer during July-December 1999, was 152,304 tonnes as against 83,256 tonnes during July-Decembr 1998, registering a rise of 82.94 percent. The production of glass fell by 5.6 percent during the same period over the corresponding period of the last year.

The items which registers growth in their production were topped by tractors followed by phosphatic fertilizer, which in turn was followed by printing paper growing by 43.38 percent. Similarly cotton yarn, cotton cloth, paper, paper board, soda ash, caustic soda, urea, ammonium, ammonium nitrate, super-phosphate, cement, motor tyros, nitrogenous fertilizer, coke, cast and rolled billed, HR coils, buses registered growth in their production.

According to the date the over all economic picture was slightly improved, with slide slowing down, primarily during the second quarter of the running financial year.