Production of electrical goods shrinks 13pc

Production of electrical products witnessed a steep fall of over 13 per cent during the first four months of FY24 due to the high cost of manufacturing and the sharp increase in electricity prices. Out of 10, nine electrical products posted negative growth during July-October 2023-24 while others were already on the negative list of production in the previous fiscal year. The FY23 witnessed negative LSM growth of 10.28pc against an expansion of 11.7pc in FY22. This was an extremely serious issue since the LSM reduced from positive to negative growth showing a cumulative fall in the LSM growth by 21.98pc. The manufacturing of electrical equipment fell by 13.3pc during 4MFY24 against negative growth of 2.2pc in the same period last year. The details showed that most of these electrical products were used by middle and lower-middle-income households. However, 29.2pc inflation in FY23 eroded the purchasing power of the middle and lower middle class. Unlike India and Bangladesh middle class in Pakistan has been vanishing instead of increasing in numbers.