Pakistan’s April 2025 Manufacturing Output Rises Slightly Despite Year-to-Date Decline

The industrial landscape in Pakistan showed modest improvement in April 2025 as Large-Scale Manufacturing (LSM) output rose by 2.3% year-on-year, according to the Pakistan Bureau of Statistics (PBS). However, the sector dipped 3.2% on a month-to-month basis, suggesting that growth remains uneven.

Despite the April increase, cumulative figures for the first 10 months of the fiscal year (10MFY25) reflected a decline of 1.5% compared to the same period last year, as structural issues continue to weigh on productivity.

Key performance highlights:

• Garment manufacturing emerged as a significant driver, contributing +0.91% to the LSM index.
• Automobile production also showed renewed strength, adding +0.73%.
• Petroleum refining, textiles, and tobacco made smaller but positive contributions.

In contrast, several sectors dragged down overall output:

• Furniture production experienced the sharpest decline, at -1.82%.
• Non-metallic minerals, chemicals, and iron & steel products all reported negative growth.
• Food processing, a traditionally strong sector, also contracted by -0.50%.

These trends underscore the dual nature of Pakistan’s industrial performance: while some export-oriented and high-demand sectors are recovering, energy-intensive and capital-heavy industries remain under stress.

Economic observers caution that the sector’s year-to-date decline points to systemic inefficiencies, such as outdated machinery, poor investment flows, and persistent inflation. Stakeholders are urging the government to implement reforms that reduce industrial input costs and improve access to finance, particularly for SMEs operating in lagging sub-sectors.