In April 2025, Pakistan’s large-scale manufacturing (LSM) sector posted a 2.3% increase year-on-year, offering a short-term boost to the economy’s industrial output. However, on a month-over-month basis, the sector declined by 3.2%, reflecting the broader instability facing local industries.
According to figures released by the Pakistan Bureau of Statistics, the total output for July-April FY2024-25 registered a 1.5% decline compared to the same period last fiscal year, revealing underlying structural constraints.
Key sectors contributing to positive momentum:
- Wearing Apparel and Garments (+0.91%)
- Automotive Industry (+0.73%)
- Refined Petroleum Products (+0.35%)
- Tobacco (+0.17%) and Pharmaceuticals (+0.16%)
However, several core industries remain under pressure:
- Food Manufacturing recorded a fall of -0.50%
- Chemical Production decreased by -0.42%
- Non-Metallic Minerals and Cement combined contributed -0.61%
- Iron & Steel Products slid by -0.47%
- Electrical and Mechanical Equipment, along with Furniture, saw the steepest year-to-date losses
The decline in heavy industry categories is attributed to rising input costs, inconsistent energy supply, and dampened consumer demand, particularly in the construction and real estate sectors. Meanwhile, sectors tied to exports and domestic consumption, such as textiles and garments, appear more resilient.
Experts emphasize that while selective sectors are regaining traction, a comprehensive industrial policy is essential to foster long-term growth. Encouraging technological upgrades, improving logistics, and facilitating export incentives could help lift struggling industries in the coming fiscal cycles.
