Large-scale manufacturing posts 1.79% growth in March

ISLAMABAD: Pakistan’s large-scale manufacturing (LSM) sector grew by 1.79 percent in March 2025 compared to the same month last year, the Pakistan Bureau of Statistics (PBS) reported on Thursday.

During the July-March period of the current fiscal year 2024-25, the LSM sector contracted by 1.47 percent compared to the same period last year. This downturn highlights the ongoing challenges faced by key industries. During these nine months, production has increased in tobacco, textile, wearing apparel, coke and petroleum products, automobiles and other transport equipment while it decreased in food, chemical products, von-metallic mineral products, iron and steel products, electrical equipment, machinery and equipment and furniture.

The LSM sector is crucial to Pakistan’s economy, accounting for 69.3 percent of the country’s total manufacturing and contributing 8.2 percent to the gross domestic product (GDP). Despite the year-on-year growth, the sector posted a month-on-month contraction of 4.64 percent from February 2025. However, manufacturing activity continues to face significant challenges that are impeding broader sectoral growth.

Comparing the March 2025 performance with March 2024, several major industries faced a sharp decline. The iron and steel sector saw a contraction of 4.24pc, machinery and equipment 71.7pc, and fabricated metals output shrank by 19.1 percent.

Despite the overall contraction, some sectors posted gains on a year-on-year basis. Textiles output surged by 5.15 percent, automobiles by 18.8pc, leather products increased by 4.33 percent, pharmaceuticals 4.75pc. Other sectors that reported growth included coke and petroleum products, up by 4.47pc, computer, electronics and optical products by 8.15pc, food 20pc, and sugar by 67pc. Cotton yarn output rose by 8.8 percent, and cotton cloth production increased by 0.74 percent.