Large-scale manufacturing declines 3.5% in February

KARACHI: Pakistan’s large-scale manufacturing (LSM) output contracted 3.5 per cent year-on-year (YoY) in February 2025, marking a continued slowdown in industrial activity, according to data compiled by brokerage firm Topline Securities based on Pakistan Bureau of Statistics (PBS) figures.

The LSM Index fell to 122.56 in February, down from 127.03 in the same month last year. On a sequential basis, output declined 5.9 per cent compared to January’s reading of 130.3.Cumulatively, during the first eight months of the current fiscal year (8MFY25), LSM output slipped by 1.9 per cent YoY. The index averaged 115.82 during the July-February period, compared to 118.07 in 8MFY24.

The LSM sector, which comprises key industries such as textiles, automobiles, beverages, iron and steel, and cement, has faced multiple headwinds over the past year including high interest rates, elevated energy costs and weak domestic demand.February’s decline comes after a brief rebound in January, when the index hit a four-month high of 130.3, buoyed by increased production in select sectors.