Large Scale Manufacturing in Pakistan

Compiled by Mirza Rohail B http//economicpakistan. wordpress. com/2008/01/27/large-scale-manufacturing/ The manufacturing vault of heaven grew at an average rate of 8 per centum from the sixties to the eighties, exclusively fell to 3. 9 percent during the nineties. This was mainly caused by reduction in investment levels due to lack of continuity and consistency in policies. policy-making instability law and order position in the major industrial centers, transport bottlenecks, as well as unreliability and inadequate availableness of power supply at affordable rates were additional factors puff down the sector.The sector has shown impressive rec overy recently and has grown at a compound rate of 10. 9 percent per annum during 2001 05, with Large graduated table Manufacturing (LSM) growing even faster, becoming 19. 9% in 2005. The contribution of large Manufacturing at basic harms stand at Rs 844 jillion as compared with Rs 264 million in 2000-01, figures from the Census o f Large- home plate Manufacturing Industries (CMI) 2005-06 show. LSM contribution to GDP also called as Gross Value Added (GVA) at producers prices has been estimated at Rs 912 billion as compared with the old Census 2000-01 amount of Rs 280 billion.Political and macroeconomic stability, rationalization of tariffs, increase in investments, improved utilization of productive capacity, and growth in demand for construct products, resulting from senior higher exports and consumer financing have been the major factors leading to this growth. Large Scale Manufacturing 1999 and 2000 1. 5% 2000 and 2001 11% 2001 and 2002 3. 5% 2002 and 2003 7. 2% 2003 and 2004 18. 1% 2004 and 2005 19. 9% 2005 and 2006 8. 7% 2006 and 2007 8. 6% 2007 and 2008 5%Census of Large-Scale Manufacturing Industries The contribution of Large-Scale Manufacturing at basic prices stand at Rs 844 billion as compared with Rs 264 billion in 2000-01, figures from the Census of Large-Scale Manufacturing Industrie s (CMI) 2005-06 show. The CMI is conducted after every five years victimisation the frame of Provincial Labour Departments . It is conducted by Federal Bureau of Statistics (FBS) in collaboration with Provincial Directorates of Industries and Bureaus of Statistics (BoS) under the Industrial Statistics Act 1942.The basic price is the amount receivable by the producer from the purchaser for a building block of a good or service produced as output disconfirming any tax payable, and plus any subsidy receivable. Census of manufacturing industries 2005-06 shows order of ware at Rs 2929 billion depicting an increase of 165 percent over Rs 1104 billion in CMI 2000-01. LSM contribution to GDP also called as Gross Value Added (GVA) at producers prices has been estimated at Rs 912 billion as compared with the precedent Census 2000-01 amount of Rs 280 billion.Capital stock or value of bushel assets amounted to Rs 1147 billion at the end of fiscal year 2005-06 as compared with Rs 428 bill ion at the end of fiscal year 2000-01. CMI 2005-06 frame was enhanced use industrial directories provided by provincial directorates of industries as well as results of economic Census 2001 conducted by FBS. The total number of industries surveyed in CMI 2005-06 was 13,146 establishments. Out of these 6417 establishments supplied mandatory data (compared to 4528 units in CMI 2000-01). 2364 establishments were found closed and 3213 establishments gave no response.The results of CMI would be introduction for the forthcoming revision of Pakistans National Accounts. Pakistan Manufacturing Industry Pakistans manufacturing industry is heavily dominated by food, textiles and apparel, and leather industries to the JF-17 Thunder extent of over 50 percent. The share of textiles and its derivatives in exports was as large as 67 percent in 2003-04. Other major segments in manufacturing include chemicals and pharmaceuticals (15. 2 percent), basic metal industry (7. 7 percent), nonmetallic m ineral products (5. 1 percent), machinery (4. 6 percent), cement (4. percent), automobiles (4. 4 percent). Automobiles, electronics, cement, fertilizers and textiles have all showed cumulative persona digit growth during the last three years. An important feature of the applied science sector is the level of competence reflected in topical anesthetic design and local content, (with deletion levels of 80 100 percent in electrical goods, 56-89 percent in automobiles and motor cycles, and 75-100 percent in domestic appliances). Manufacturing Statistics Progressive family Initial data for Jul-Sep FY08 suggested a deceleration in the growth of LSM payoff to only 6. percent. Further, Large Scale Manufacturing (LSM) growth has declined to 5. 57 per cent during the origin five months (July-November) of the current financial year due to economic slow-down and high interest rates and poor law and order situation. Similarly, improved prospects in transportation & storage sub-sectors on the back of relatively better production in major crops, strong contribution by finance and insurance policy sector and augmented administrative and defence related spending go away provide support to adequate level of growth in the work sector.These prospects of the services sector would be neutralized to some extent by negative growth in the LSM, imports contraction, shrinking profits in the telecom sector. Leading indicators pertaining to the major sector wholesale and retail trade points towards a reasonable growth in this sub-sector. The targeted growth of 4. 1 percent is already almost half of last years actual 8. 2 percent. (c) ECONOMIC PAKISTAN