Pakistan’s large-scale manufacturing (LSM) sector posted a growth of 2.29pct YoY in April 2025, according to data from the Pakistan Bureau of Statistics (PBS). However, output declined by 3.2pct compared to March, reflecting ongoing volatility.
Despite the April uptick, the sector contracted by 1.52pct YoY over the first ten months of fiscal year 2024-25, highlighting persistent challenges across key industries.
The steel sector remained under pressure. In April, cold-rolled (CR) steel production dropped 1.32pct YoY to 287,150 tons, while billet production declined 3pct to 320,000 tons. For the ten-month period, billet output plummeted nearly 25pct to 3.22 mln tons, and CR steel fell 2.2pct to 2.94 mln tons.
Although some signs of economic recovery appeared in the second half of FY24, external headwinds, such as weak global demand, currency depreciation, and a widening current account deficit, continue to strain fiscal space and limit government maneuverability under tight financial conditions.
The LSM sector plays a critical role in Pakistan’s economy, accounting for nearly 70pct of overall manufacturing and contributing 8.2pct to GDP. It includes industries employing 10 or more workers across a broad range of manufacturing activities.