Pakistan’s LSM Sector Records 1.90% Growth Decline in 8 Months Amid Industrial Slowdown, PBS Report

ISLAMABAD: Pakistan’s Large Scale Manufacturing (LSM) sector witnessed a decline of 1.90 percent during the first eight months (July-February) of the fiscal year 2024-25, compared to the same period of the previous year, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.

The Quantum Index Number (QIM) for LSM was recorded at 115.82 during the July-February period, indicating subdued industrial performance. On a year-on-year basis, LSM output in February 2025 decreased by 3.51 percent when compared with February 2024, while a month-on-month comparison with January 2025 shows a decline of 5.90 percent.

The provisional quantum indices of Large Scale Manufacturing Industries (LSMI), based on the 2015-16 base year, were compiled using the latest data provided by source agencies.

Sector-Wise Performance

The overall contraction in the LSM sector was mainly attributed to negative growth in key industries. Notable declines were observed in:

• Food (-0.50%)
• Chemical Products (-0.43%)
• Non-Metallic Mineral Products (-0.73%)
• Iron & Steel Products (-0.55%)
• Electrical Equipment (-0.50%)
• Machinery and Equipment (-0.15%)
• Cement (-0.37%)

Despite the overall negative trend, several sectors recorded positive growth and helped mitigate the extent of the decline. These include:

• Garments/Wearing Apparel (+1.29%)
• Automobiles (+0.72%)
• Textiles (+0.29%)
• Tobacco (+0.25%)
• Petroleum Products (+0.30%)

According to PBS, production increased in the sectors of tobacco, textiles, wearing apparel, coke & petroleum products, automobiles, and other transport equipment during the July-February 2024-25 period when compared to the corresponding months of the previous year. Meanwhile, decreases were reported in food, chemical products, non-metallic mineral products, iron & steel products, electrical equipment, machinery and equipment, and furniture.

The decline in LSM performance reflects continued pressure on Pakistan’s industrial sector amid high input costs, energy constraints, and weak demand. LSM serves as a critical barometer of the country’s economic health, contributing significantly to GDP, exports, and employment.

Economic analysts have warned that unless industrial confidence and investment are revived through policy support and macroeconomic stability, the sector may face further setbacks in the coming months. The PBS is expected to release more detailed sectoral breakdowns and updates as new data becomes available.