Pakistan’s Manufacturing sector struggles as LSM Dips 1.47% (July–March FY25)Y25

ISLAMABAD: Pakistan’s Large Scale Manufacturing (LSM) sector posted a contraction of 1.47% during the July–March period of the fiscal year 2024–25, compared to the same period last year, according to the latest report by the Pakistan Bureau of Statistics (PBS).

Despite the overall decline, LSM output in March 2025 increased by 1.79% compared to March 2024. However, on a month-on-month basis, the sector experienced a decrease of 4.64% when compared to February 2025.

The Quantum Index Numbers (QIM) for Large Scale Manufacturing Industries (LSMI), based on the 2015–16 base year, were developed using data from various source agencies. The provisional QIM for March 2025 stands at 117.20, while the cumulative index for the July–March period of FY25 is 116.01.

The overall negative growth was the result of mixed performance across major industries. Growth was recorded in tobacco, textile, garments, petroleum products, pharmaceuticals, automobiles, and other transport equipment. In contrast, production declined in food, chemical products, non-metallic mineral products, cement, iron and steel products, electrical equipment, machinery and equipment, and furniture.

The data reflects a fragile recovery pattern in Pakistan’s industrial sector, with sporadic gains in some areas offset by persistent slowdowns in others. As the country navigates economic challenges, stabilizing LSM output remains crucial for broader economic growth and employment.