Pakistan’s Manufacturing Output Shrinks Despite Gains in Autos and Apparel
Pakistan’s large-scale manufacturing (LSM) sector slipped into negative territory in FY25, contracting by 0.74% compared with the previous year, fresh data from the Pakistan Bureau of Statistics (PBS) shows.
A Mixed Picture: June Growth but Monthly Dip
June offered a temporary lift, with year-on-year industrial output rising 4.14%. But the momentum quickly fizzled, as production dropped 3.67% compared to May—underscoring the volatility in the sector.
Key Sectors Under Pressure
The slowdown was driven largely by weaknesses in industries central to the economy. Textiles, food, petroleum products, and pharmaceuticals all reported declines. Machinery and equipment manufacturing was hit the hardest, plunging by more than 35%.
Other heavy industries—including chemicals, steel, and electrical goods—also struggled, reflecting both weaker domestic demand and rising costs that continue to squeeze production.
Bright Spots in Autos and Transport
Amid the downturn, a few sectors bucked the trend. Automobiles surged 46%, marking one of the strongest rebounds in recent years, while transport equipment grew nearly 37%. Apparel and beverages also posted gains, offering some relief to the otherwise grim industrial landscape.
What the Numbers Signal
The uneven performance of LSM highlights Pakistan’s fragile recovery. A handful of consumer-driven sectors are expanding, but much of the industrial base remains under strain, weighed down by energy costs, policy uncertainty, and weak external demand.
Unless the losses in critical industries are contained, the gains in autos and apparel may not be enough to offset the broader contraction.
