ISLAMABAD, May 14: Industrial production grew by a paltry 4.84 per cent in the first nine months of the current fiscal year, and it is feared that the annual industrial growth target of 10.5 per cent may not be achieved.

The slump in manufacturing production was witnessed in March 2007 when it grew by a meagre 3.23 per cent, the lowest growth recorded in any month of the past recorded history, Federal Bureau of Statistics (FBS) data revealed on Wednesday.

The figures for the past five months since November 2007 showed this downturn in the industrial growth due to the worst energy crisis, high cost of doing business, reduced working days on the back of strikes.

Analysts said this situation has dampened chances of any reversal in industrial growth in the next three months. This will also affect contribution of industrial sector in the GDP.

The growth in industrial production had been steadily on the decline for the last three years as it declined to 8.8

per cent in the year 2006-07 from 19.9 per cent in the year 2004-05 owing to capacity constraints and closure of many units as a result of high cost of doing business in the country.

Analysts said as there is no industrial policy in the country, the new government will have to consider a broader policy for encouraging industrialisation in the country. And also there is no effective policy or facilities for encouraging small industries to diversify the narrow industrial base of the country, they added.

With this slump in the industrial growth, the export of commodities, particularly textile products, has also affected to a greater extent, which recorded a marginal growth of six per cent during the period under review.

According to the figures, the production of cigarettes increased by 5.11 per cent, while cotton yarn grew by 3.32 per cent and cotton cloth production 4.89 per cent during the first nine months this year over last year.

In the food sector, the vegetable ghee production declined by 2.83 per cent. However, cooking oil production was up by 1.11 per cent, wheat 1.26 per cent, starch and its products 6.39 per cent, beverages 30.46 per cent during the period under review over last year.

Among the electrical production, refrigerators recorded a growth of 10.70 per cent, air-conditioners 0.29 per cent, TV sets production 19.29 per cent, electric fans 18.26 per cent, switch gear 30.49 per cent, bicycles 1.70 per cent, electric tubes 0.01 per cent and electric bulbs 3.21 per cent during the period under review over the last year.

However, production of deep-freezers dipped by 11.19 per cent, electric motors 15.98 per cent, electric meters 44.94 per cent and electric transformers 36.15 per cent during the period under review over last year.

The production of paper and board has also dropped by 5.59 per cent, but petroleum products were up by 6.03 per cent and cement 17.95 per cent during the first nine months of the current fiscal year over last year.

The production of glass sheet declined by 3.11 per cent, steel products 39 per cent, billets 17.12 per cent, coke 13.93 per cent and HR sheets 10.03 per cent during the period under review over last year.

However, production of pig iron was up by 2.29 per cent, soda-ash 13.51 per cent, caustic soda 1.44 per cent, nitrogen fertilisers 1.09 per cent.

However, phosphate fertiliser production came down by 23.99 per cent during the period under review.