Pakistan’s Large-Scale Manufacturing (LSM) sector contracted by 3.51pct YoY in February 2025, continuing a downward trend that has persisted since August 2024, with the exception of October, according to the Pakistan Bureau of Statistics. LSM also saw a 5.9pct decline compared to the previous month.
In the first eight months of FY25, LSM recorded a negative growth of 1.90pct.
The steel sector was hit particularly hard, with CR steel production falling 1.74pct YoY to 287,400 tons, and billet output plummeting 25pct to 315,000 tons in February 2025. Over the first eight months of FY25, billet production dropped by more than 28pct YoY to 2.59 mln tons, while CR steel production declined 2.4pct YoY to 2.36 mln tons.
The ongoing decline in LSM reflects continued pressures on Pakistan’s industrial sector, including high input costs, energy shortages, and weak demand. As a key indicator of the country’s economic health, LSM plays a significant role in GDP, exports, and employment.