Pakistan’s Large-Scale Manufacturing (LSM) sector witnessed a 7.33pct YoY growth in May, marking its sixth consecutive monthly increase, according to the Pakistan Bureau of Statistics. The LSM sector also grew by 7.52pct compared to April 2024. In the first eleven months of FY24, LSM output saw a slight increase of 0.99pct YoY.
In May 2024, the iron and steel production index decreased by 0.73pct YoY. Cold-rolled steel production dropped by 3.65pct YoY to 290,000 tons, while billet output decreased by 32.2pct YoY to 305,500 tons.
Manufacturing activity in Pakistan began recovering in FY24 but faced challenges such as weak market sentiments, global supply disruptions, and a heavy reliance on imports, according to government data. Additional challenges included escalating input costs, reduced government expenditure, high inflation, and elevated policy rates. Political and economic uncertainty ahead of elections and subdued global demand further impacted the sector.
