Pakistan’s large-scale manufacturing sector has sunk deeper into negative territory, recording a worrying 1.9% year-on-year decline during the first eight months of FY 2024-25, according to provisional data released by the Pakistan Bureau of Statistics (PBS). The slump highlights stark contrasts between a handful of thriving industries and a broader collapse in critical sectors, raising alarms about the economy’s resilience.
The downturn accelerated sharply in February 2025 alone, with output plunging 3.51% compared to February 2024 and nosediving 5.9% month-on-month. November 2024 also saw a grim 3.81% annual contraction. While automobiles, petroleum, and tobacco posted growth with car production skyrocketing 30.72% these gains were overshadowed by freefalls in machinery (-33.54%), furniture (-56.49%), and food (-5.01%). Cement, chemicals, and electrical equipment sectors likewise faced double-digit declines, painting a fractured industrial landscape.
PBS attributed the bleak figures to volatile demand, supply chain disruptions, and uneven sectoral performance. Notably, textiles eked out a marginal 0.33% rise, while leather and pharmaceuticals saw modest gains. However, collapsing output in fertilizers (-17.94%), rubber (-13.28%), and iron and steel (-9.76%) underscored systemic challenges.
The report, based on data from federal and provincial agencies, emphasized the provisional index of 109.33 for July-November 2024-25, reflecting erratic growth patterns. Analysts warn the widening gap between high-performing and crisis-hit industries could strain employment and economic stability, urging policy interventions to revive floundering sectors.
As Pakistan grapples with inflationary pressures and global economic headwinds, the manufacturing slump signals deeper structural woes, casting a shadow over recovery prospects.
