Pakistan’s Large Scale Manufacturing Industries (LSMI) recorded a modest year-on-year increase of 2.29% in April 2025, reaching 108.37 points compared to 105.93 in April 2024, according to data released by the Pakistan Bureau of Statistics (PBS). However, the sector faces persistent challenges, evidenced by a significant 3.2% monthly decline from March 2025 (111.95 points) and a cumulative contraction of 1.52% over the first ten months (July-April) of the fiscal year 2024-25.
The April data reveals starkly divergent sectoral performances. Leading the growth charge was the automobile industry, surging an impressive 42.16% year-on-year. Other gainers included cotton yarn (8.40%), garments (6.01%), petroleum products (5.01%), and cotton clothes (0.75%). Conversely, significant declines plagued the sugar industry (-14.55%), iron and steel products (-10.11%), cement (-5.62%), and fertilizers (-0.73%).
Key Contributors & Draggers (April YoY):
Positive: Automobiles (0.73% contribution), Garments (0.91%), Petroleum Products (0.35%), Textiles (0.49%), Tobacco (0.17%), Pharmaceuticals (0.16%).
Negative: Food (-0.50%), Non-metallic Mineral Products (-0.61%), Iron & Steel (-0.47%), Electrical Equipment (-0.42%), Chemicals (-0.42%), Cement (-0.32%), Furniture (-1.82%).
The cumulative July-April 2024-25 performance mirrored this split: growth in tobacco, textiles, apparel, coke/petroleum products, automobiles, and transport equipment, countered by declines in food, chemicals, non-metallic minerals, iron/steel, electrical equipment, machinery, and furniture.
This mixed LSMI picture underscores the fragile state of Pakistan’s industrial sector, a critical component representing approximately 69% of manufacturing and 8% of overall GDP. While the auto sector’s robust performance and modest textile gains offer positive signals, the deep contractions in construction-linked sectors like cement, iron, and steel, alongside food and chemicals, point to underlying economic pressures. Analysts note that while economic activity showed signs of rebounding in the latter half of the previous fiscal year (FY24), headwinds from a global demand slump, currency devaluation, and a widening current account deficit continue to constrain broader industrial recovery and fiscal flexibility. The persistent cumulative contraction highlights the ongoing challenges facing the manufacturing base.
