Significant growth of Large Scale Manufacturing (LSM) is essential for economic development. The ongoing energy crisis and high markup rates have been the major factors behind the sluggish performance of the LSM sector.

The large-scale manufacturing sector dragged down to 1.52 percent during the first five months of ongoing fiscal year 2011-12 over the corresponding period last 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, Yassar Sakhi Butt, President, Islamabad Chamber of Commerce and Industry has said in a statement.

He was responding to the reports that the Quantum Index Number of LSM industries stood at103.55 points in the first five months of the fiscal year 2011-12 as compared to 102.01 points of July-November period of the year 2010-11which has showed that LSM has performed below its potential. 

ICCI President said that LSM sector, which accounts for 70 percent of industrial production, has been suffering severely due to energy shortages and power tariff hike. He 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, so he called upon the government for taking measures to give a boost to LSM growth.

Yassar Sakhi Butt said that Indian manufacturing went up at the rate of 8.6 and China’s manufacturing sector grew by 11 percent while Pakistan has been facing reverse trend of growth in LSM sector.

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, Government in consultation with the private sector should develop a national plan for industrial growth.