ISLAMABAD, Feb 13: The industrial production has grown by paltry 6.9 per cent in the first five months (July-November) of the current fiscal year raising serious worries that annual industrial growth target of 10.5 per cent would remain unachievable.

The slump in manufacturing production was witnessed in November 2007, when it grew by a meagre 4.74 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 December and January have not been compiled as yet, but the worst energy crisis, reduced working days on the back of strikes have dampened the chances of any reverse in industrial growth in the last two months.

The growth in industrial production had been steadily on 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 the steady dip in industrial growth will also affect its contribution in the overall GDP, which would make it difficult for the economic managers to achieve the GDP target.

The GDP rate is worked out in the month of May. It would be very difficult to have that much growth in the next three months to recover the plummeting recorded in industrial growth to reach closer to the target.

As there is no industrial policy in the country, except some product-specific policies, the country is going to face the brunt of closing down of vulnerable industries to cheaper imports. And also there is no effective policy or facilities for encouraging small industries to diversify the narrow industrial base of the country.

The industry specific data shows that many sub-sectors were not performing well in the first five months of the current fiscal year mostly electronic goods. As a result of the decline, the import bill of consumer and electronic goods have steadily recorded an upsurge during the period under review. With this slump in the industrial growth, the export of commodities has also affected to a great extent, which recorded a marginal growth of six per cent during the period under review.According to the figures, the production of cigarettes has increased by 8.7 per cent, while cotton yarn grew by 4.57 per cent and cotton cloth production 1.42 per cent during the first five months this year over last year.

In the food sector, the vegetable ghee production declined by 1.06 per cent. However, cooking oil production was up by 1.78 per cent, wheat 6.34 per cent, starch and its products 2.47 per cent, beverages 41.38 per cent during the period under review over the last year.

Among the electrical production, refrigerators recorded a growth of 10.85 per cent, deep freezers 13.05 per cent, TV sets production 19.06 per cent, electric fans 32.27 per cent, switch gear 18.8 per cent, bicycles 3.87 per cent and electric bulbs 2.22 per cent during the period under review over the last year.

However, production of air-conditioners dipped by 6.71 per cent, electric tubes 5.32 per cent, electric motors 12.32 per cent, electric meters 29.09 per cent and electric transformers 36.37 per cent during the period under review over the last year.

The production of paper & board has also dropped by 12.24 per cent. But petroleum products were up by 8.07 per cent and cement 24.15 per cent during the first five months of the current fiscal year over last year.

The production of glass sheet declined by 7.92 per cent, steel products 1.39 per cent, billets 3.92 per cent and HR sheets 0.78 per cent during the period under review over the last year.

However, the coke production was up by 14.72 per cent, pig iron 1.06 per cent, soda ash 17.25 per cent, caustic soda 11.44 per cent, nitrogen fertilisers 3.37 per cent and phosphate fertilisers 5.74 per cent during the period under review.