Pakistan’s large-scale manufacturing sector reported a year-on-year growth of 2.3% in April 2025, signaling a cautious rebound in industrial activity, as per the latest data released by the Pakistan Bureau of Statistics (PBS). However, the sector witnessed a 3.2% month-on-month contraction, highlighting persisting volatility in production trends.

During the first 10 months of FY25 (July-April), the cumulative output of LSM contracted by 1.5% YoY, underscoring the challenges faced by Pakistan’s manufacturing base in maintaining consistent growth momentum.

Key sectors that supported the annual rise in April include:

• Textiles (+0.49%)
• Garments (+0.91%)
• Petroleum Products (+0.35%)
• Automobiles (+0.73%)
• Tobacco (+0.17%)
• Pharmaceuticals (+0.16%)
• Other Transport Equipment (+0.15%)

However, these gains were partially offset by declines in sectors such as:

• Food Processing (-0.50%)
• Chemical Products (-0.42%)
• Cement and Non-Metallic Minerals (-0.61%)
• Iron and Steel (-0.47%)
• Electrical Equipment (-0.42%)
• Machinery (-0.18%)
• Furniture Manufacturing (-1.82%)

Overall, industries such as wearing apparel, coke & petroleum, and transport equipment showed resilience, while others like chemical and heavy manufacturing struggled due to input shortages and weak domestic demand.

Economic analysts believe that while the April uptick is encouraging, consistent growth will depend on stabilizing energy costs, improving business sentiment, and resolving supply chain disruptions. Industrial stakeholders are calling for targeted policy incentives to address bottlenecks, particularly in heavy manufacturing and exports.