The Large Scale Manufacturing (LSM) sector in Pakistan recorded a decline of -0.76% during the first quarter of FY 2024-25 (July-September), compared to the same period last year, as reported by the Pakistan Bureau of Statistics (PBS). However, on a month-to-month basis, LSM output grew by 0.46% in September 2024 compared to August 2024.
The quantum index for LSM industries (QIM), based on data from key agencies, stood at 111.95 for September 2024 and 109.9 for July-September 2024-25. Significant contributors to the decline include key engineering-related sectors: electrical equipment (-0.81%), machinery and equipment (-0.26%), and iron and steel products (-0.64%). Conversely, there was growth in industries like automobiles (0.45%) and other transport equipment.
Despite these challenges, increased production was noted in several categories such as food, textiles, wearing apparel, and petroleum products. However, declines were evident in pharmaceuticals, non-metallic mineral products, rubber, and furniture.
The mixed performance reflects ongoing sectoral challenges, with engineering-related industries facing a contraction. This highlights the need for policy interventions to revive and support the manufacturing sector, particularly in areas critical to infrastructure and technology development.
