20000102

14 items decline, 23 register growth

Tractors production more than doubles in July-Oct '99

RECORDER REPORT

ISLAMABAD: Out of the list of 37 selected items, production of 14 fell sharply during July-October 1999, against the corresponding months of 1998, whereas, 23 other items registered growth.

According to information provided by the Ministry of Production, the production of those items fell during the period which are considered important for the overall industrial activity.

The ministry has quoted depressed demand and overall recession as main reasons behind the fall in production. The production of jute goods, nitrophosphate, glass sheets, motor tubes, bicycles, galvanised, products, cars, jeeps, light carriage vehicles and trucks declined during July-October 1999 over July-October 1998.

The biggest fall was in the production of LCVs, which registered a negative growth of 65.21 percent during the period. Their production fell from 3,527 LCVs during July-October 1998 to 1,227 during July-October 1999.

The second biggest fall was in the production of jeeps. Their production fell from 183 jeeps during July-October 1998 to 97 jeeps July-October 1999. Motor-tubes registered a fall in production to the tune of 33.55 percent in the same period.

The cigarette production in July-October 1999, was 13,618 million against 17,502 million in July-October 1998 showing a decline of 22.19 percent. The main reason for the fall was reduction in the market size by 26 percent, which was mainly due to influx of tax/duty-evaded brands as well as free availability of counterfeit brands.

Similarly, production of jute goods in July-October 1999 was 26,037 tonnes as against 30,766 tonnes in the corresponding period of last year, showing a reduction of 15.37 percent. The reason for the decline was poor demand and poor arrangement with banks for working capital.

The production of nitrophosphates during July-October 1999 was 91,485 tonnes as against 112,421 tonnes in July-October 1998, showing 18.62 percent decline. The main reason given for the shortfall was stoppage of Pak-Arab Fertilizer plant in Multan for more than 285 hours in July-October 1999.

According to the information, the production of glass fell by 4.85 percent and production of cars, jeeps, LCVs and trucks fell by 24.76 percent, 46.99 percent, 65.21 percent and 26.94 percent, respectively.

The items which registered growth in production were topped by tractors which grew by 139 percent. During July-October 1999, 12,311 tractors were produced in the country, against 5,149 tractors produced during the corresponding period of 1998.

Similarly, cotton yarn, cotton cloth, paper, paper board, soda ash, caustic soda, urea, ammonium nitrate, super-phosphate, cement, motor-cycle, motor tyres, coke, pig iron, cast and rolled billet, HR coils, buses and tractors registered growth in their production.

According to the data, overall economic picture remained negative during the first four months of the current financial year.