Pakistan’s Large-Scale Manufacturing (LSM) sector shrinked by 0.74% in the financial year 2024-25 compared to the previous year, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
While the sector posted a year-on-year growth of 4.14% in June, it also recorded a 3.67% month-on-month decline, reflecting continued volatility in industrial output.
The negative annual performance was largely driven by contractions in key industries such as tobacco, textiles, garments, petroleum products, pharmaceuticals, and automobiles. Other sectors including food, chemicals, cement, and iron & steel also contributed to the overall decline.
Despite the downturn, certain segments showed resilience. Beverages grew by 1.29%, textiles by 2.49%, wearing apparel by 5.7%, coke and petroleum products by 5.33%, automobiles by a remarkable 46.15%, and other transport equipment by 36.6%.
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However, steep declines in other categories weighed heavily on overall output. The food sector shrank 1.83%, chemicals contracted by 3.45%, non-metallic mineral products dropped 7.9%, while machinery and equipment posted the sharpest fall at 35.46%.
Economists note that while selective growth in high-value industries is encouraging, Pakistan’s broader industrial base continues to face challenges from weak domestic demand, high production costs, and sluggish export competitiveness. Analysts warn that without targeted reforms and a more favorable economic environment, the LSM sector may struggle to regain consistent momentum in the coming quarters.
