Pakistan’s large-scale manufacturing (LSM) sector grew 1.79% year-on-year in March 2025, according to data from the Pakistan Bureau of Statistics (PBS). This moderate increase reflects gains in key industries such as tobacco, textiles, coke and petroleum products, automobiles, and transport equipment.
However, the broader picture remains concerning. During the first nine months of FY2024-25, from July to March, the LSM sector contracted by 1.47% compared to the same period last year. This ongoing decline highlights the challenges still facing Pakistan’s industrial base.
The PBS report noted that while some sectors showed improvement, others continued to struggle. Food, chemicals, non-metallic mineral products, iron and steel, machinery, electrical equipment, and furniture saw negative growth. Month-on-month, LSM output also fell 4.64% in March compared to February.
Textiles and automobiles were among the top performers. Textile output rose by 5.15%, and automobile production surged 18.8%. Meanwhile, the food industry saw a significant 20% jump, largely due to a 67% spike in sugar production. Electronics and leather goods also showed positive trends.
Despite these bright spots, heavy losses in machinery (down 71.7%), fabricated metals (down 19.1%), and iron and steel (down 4.24%) weighed down overall performance. The LSM sector, which accounts for nearly 70% of total manufacturing and 8.2% of GDP, remains under pressure as it navigates global and domestic economic challenges.