Pakistan’s factory output rises 2.3% in April, but 10-month trend still negative

ISLAMABAD: Pakistan’s large-scale manufacturing sector expanded by 2.29 per cent in April 2025 compared to the same month last year, according to official data released Tuesday, offering a glimmer of growth even as the broader industrial landscape remains under pressure.

Despite the April uptick, overall LSM output shrank 1.52pc during the July-April period of fiscal year 2024-25, underscoring persistent headwinds across key industries such as food, chemicals, machinery, and iron & steel. Despite the year-on-year growth, the sector posted a month-on-month contraction of 3.2 percent from April 2025. However, manufacturing activity continues to face significant challenges that are impeding broader sectoral growth.

The LSM sector is crucial to Pakistan’s economy, accounting for 67.5 percent of the country’s total manufacturing and contributing 8.0 percent to the gross domestic product (GDP). The Pakistan Bureau of Statistics (PBS) from multiple sources, including the Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production and provincial bureaus of statistics, compiles the data.

Comparing the April 2025 performance with April 2024, several major industries faced a sharp decline. The iron and steel sector saw a contraction of 1.82pc, machinery and equipment 50.7pc, wearing apparel (garments) 8.55pc and chemicals with 1.3pc, including 10.78 per cent contraction in chemical products output. Other notable contractions included fabricated metals output that shrank by 0.14pc, furniture 40.3pc and football production squeezed by 41.5pc over the same month of last year.

Textiles output surged by 7.9 percent, automobiles by 60.2pc, leather products increased by 1.8pc, and pharmaceuticals 7.5pc. Cement output also increased by 3.6 percent. Other sectors that reported growth included coke and petroleum products, up by 5.54pc, computer, electronics and optical products by 5.13pc, food 3.47pc, beverages 4.27pc, and sugar by 184pc. Cotton yarn output rose by 8.66 percent, tobacco 9.1pc, fertilizers 5.07pc, and cotton cloth production increased by 0.74 percent.