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Express Tribune
3 days ago
- Business
- Express Tribune
Industrial activity shrinks 3.67% in June
Pakistan's large-scale manufacturing (LSM) sector ended fiscal year 2024-25 on a weak note, contracting by 0.74% compared with the previous year, according to provisional data released by the Pakistan Bureau of Statistics (PBS). The Quantum Index of Manufacturing (QIM) for June 2025 stood at 112.95, which reflected a modest 4.14% year-on-year growth but also a steep monthly fall of 3.67% from May. 'Overall, the Large-Scale Manufacturing Sector has shown a growth of -0.74% during July-June 2024-25 when compared with the same period of last year,' noted PBS. The LSM, which notes the growth of the industry in the country and contributes around 8% to the national GDP, contracted by 0.03% in fiscal year 2024, following a growth of 0.92% in the preceding year. On a cumulative basis, the QIM averaged 114.82 during July-June 2024-25, lower than 115.67 recorded in the corresponding period of 2023-24, highlighting subdued momentum in the industrial economy. The contraction was primarily driven by steep declines in cement, iron and steel, non-metallic mineral products, electrical equipment, machinery, and furniture. The cement sector shrank by 4.52% over the year, while iron and steel products fell 8.71%. Similarly, production of non-metallic mineral products dropped 7.86%, electrical equipment 11.65%, machinery and equipment 35.46%, and furniture plunged by a sharp 56.26%. The food sector, which carries significant weight in the index, also contracted 3.97%, further dragging down overall performance. Chemicals and fabricated metal products recorded similar negative growth, compounding pressures on the sector. Despite the broad-based weakness, certain industries managed to post strong gains, providing some relief. Automobile production surged by an impressive 46.15% during the fiscal year, benefiting from renewed demand and improved supply chain conditions. Petroleum products rose 11.92%, reflecting higher refinery output. Garments grew 5.70%, while fertilisers and pharmaceuticals expanded by 1.69% and 2.97%, respectively. Textiles, the backbone of Pakistan's export sector, showed mixed results; cotton yarn and garments recorded gains, yet overall textile output fell slightly by 0.85%. Beverages and tobacco also managed recoveries after consecutive years of contraction. 'Notable improvement has been witnessed in many pivotal sectors in recent months,' said Waqas Ghani Kukaswadia, Research Head of JS Global. Declining inflation supported LSM growth by lowering input costs and strengthening demand, he added. 'I believe that easing in outgoing months has improved the growth outlook for the large-scale manufacturing sector.' 'LSMI growth signals industrial recovery, boosting employment, exports, and government revenues,' said Ali Najib, Deputy Head of Trading at Arif Habib Ltd. Strong performance in automobiles and apparel supports demand and investment, while declines in machinery, minerals, and furniture highlight structural weaknesses that could restrain sustainable economic momentum. 'In my opinion, outlook remains cautiously optimistic, but persistent weakness in machinery and construction-linked sectors may hinder broad-based, sustainable industrial recovery, as indicated by LSMI numbers,' Najib told The Express Tribune. The mixed trends in the LSM sector point to uneven growth and persistent structural weaknesses. While consumer-driven sectors like automobiles and garments showed resilience, industries linked with construction and heavy manufacturing remained under severe stress, reflecting subdued domestic demand and rising input costs. Energy shortages, higher financing expenses, and weak investor confidence have further constrained industrial expansion. Analysts caution that without targeted policy support, energy sector reforms, and incentives to boost exports, Pakistan's manufacturing base will continue to struggle, limiting job creation and undermining the country's broader economic recovery.
Business Recorder
18-06-2025
- Business
- Business Recorder
Apr LSMI output grows 2.29pc YoY
ISLAMABAD: The large-scale manufacturing Industries (LSMI) of the country has registered an increase of 2.29 percent in April 2025 to 108.37 compared to last year's 105.93, the LSMI data released here on Tuesday by the Pakistan Bureau of Statistics (PBS) revealed. On a monthly basis, the LSMI registered a decline of 3.2 per cent compared to March's 111.95 points. Cumulatively in the 10 months of the ongoing fiscal year 2024-25, the LSM showed a contraction of 1.52 per cent on a year-on-year (YoY) basis. On YoY basis automobile industry posted 42.16 per cent growth, cotton yarn 8.40 per cent, garments 6.01 per cent, petroleum products 5.01 per cent and cotton clothes 0.75 per cent, while sugar industry witnessed a decline of 14.55 per cent, iron and steel 10.11 per cent, cement 5.62 per cent and fertilizer 0.73 per cent. Jul-Mar LSMI output grows 1.47% YoY The main contributors remained tobacco (0.17 per cent), textile (0.49) garments (0.91), petroleum products (0.35), pharmaceuticals (0.16), automobiles (0.73), other transport equipment (0.15), food (-0. 50), chemicals (-0.42) non-metallic mineral products (- 0.61), cement (-0.32), iron and steel products (-0.47), electrical equipment (-0.42), machinery and equipment (-0.18) and furniture (-1.82). The production in July-April 2024-25 as compared to July-April 2023-24 has increased in tobacco, textile, wearing apparel, coke and petroleum products, automobiles and other transport equipment while it decreased in food, chemical products, non-metallic mineral products, iron and steel products, electrical equipment, machinery and equipment, and furniture. The performance of LSMI is a key indicator of the overall health of the industrial sector and is assessed monthly through the Quantum Index of Large Scale Manufacturing Industries (QIM). Historically, LSM dominates the manufacturing sector of GDP, accounting for around 69 per cent of manufacturing, a sub-component of Industry, and about eight per cent of the overall GDP. Economic activity began to rebound in the second half of FY24. However, global demand slump, currency devaluation, and a widening current account deficit severely limited the government's flexibility, particularly in maintaining fiscal discipline amidst stringent financial conditions. Following products registered an increase beverages 0.15 per cent, tobacco 0.17 per cent, textile 0.49 per cent per cent, wearing apparel 0.91 per cent, leather products 0.01 per cent, wood products posted zero per cent growth, paper and board products 0.03 per cent, coke and petroleum products posted a growth of 0.35 per cent, pharmaceuticals 016 per cent, computer, electronics and optical products posted zero per cent growth, automobiles 0.73 per cent and other transport equipment 0.15 growth. Following sectors registered a decline food 0.50 per cent, chemicals 0.42 per cent, chemical products 0.38 per cent, fertilisers 0.04 per cent, rubber products zero per cent, non-metallic mineral products 0.61 per cent, iron and steel products 0.47 per cent, fabricated metal 0.06 per cent, electrical equipment 0.42 per cent, machinery and equipment 0.18 per cent, furniture 1.82 per cent, and other manufacturing 0.08 per cent. Copyright Business Recorder, 2025
Business Recorder
10-06-2025
- Business
- Business Recorder
July-March 2025: LSM experiences 1.5% negative growth
ISLAMABAD: Large-Scale Manufacturing (LSM) has experienced a negative growth of 1.5 percent during July-March 2025 in contrast to a slight decline of 0.22 percent observed in the corresponding period of the previous year. Within manufacturing, LSM plays a dominant role, accounting for 67.5 percent of the manufacturing sector and 8.0 percent of GDP, followed by Small-Scale Manufacturing (SSM) and Slaughtering, which contribute 2.4 percent and 1.4 percent to GDP, respectively, according to Pakistan Economic Survey 2024-25. The quarterly pattern highlights continued challenges in LSM, which has consistently weighed down industrial performance in the outgoing fiscal year. Gradual recovery likely in LSM sector, says FD Overall manufacturing growth slowed to 1.3 percent in FY 2025, compared to 3.0 percent last year. This deceleration was primarily driven by a contraction of 1.5 percent in LSM, compared to a modest growth of 0.9 percent in the previous year. In contrast, SSM and Slaughtering grew by 8.8 percent and 6.3 percent, respectively, providing some support to the sector. This marks the third consecutive year of negative growth in LSM, which can be attributed to ongoing structural challenges, elevated input costs, and downturns in critical sectors such as Food, Chemicals, Iron & Steel, and Electrical Equipment. Despite the overall lacklustre performance, nearly half of the LSM sectors demonstrated positive growth, including significant industries such as Wearing Apparel, Textiles, Coke & Petroleum Products, Pharmaceuticals, and Automobiles, according to the survey. However, in March 2025, the growth of LSM registered a Year-on-Year (YoY) increase of 1.8 percent, in contrast to a growth rate of 1.7 percent during the same month in the previous year. On a Month-on-Month (MoM) basis, LSM experienced a decline of 4.6 percent in March2025, following a drop of 5.6 percent in February 2025. The LSM, based on the Quantum Index of Manufacturing (QIM), declined by 1.53 percent during current fiscal 2025, compared to a growth of 0.94 percent last year. The slowdown reflects mixed performance across key industries - declines were observed in chemicals (-5.51%), iron and steel (-10.94%), electrical equipment (-15.89%), and fabricated metal products (-17.16%), while strong growth was recorded in automobiles (40.0%), wearing apparel (7.62%), textiles (2.15%), and petroleum products (4.48%) High input costs, and elevated tax rates, continued to pose headwinds to LSM growth. Copyright Business Recorder, 2025
Business Recorder
10-06-2025
- Business
- Business Recorder
July-March 2025: LSM experiences 1.5pc negative growth
ISLAMABAD: Large-Scale Manufacturing (LSM) has experienced a negative growth of 1.5 percent during July-March 2025 in contrast to a slight decline of 0.22 percent observed in the corresponding period of the previous year. Within manufacturing, LSM plays a dominant role, accounting for 67.5 percent of the manufacturing sector and 8.0 percent of GDP, followed by Small-Scale Manufacturing (SSM) and Slaughtering, which contribute 2.4 percent and 1.4 percent to GDP, respectively, according to Pakistan Economic Survey 2024-25. The quarterly pattern highlights continued challenges in LSM, which has consistently weighed down industrial performance in the outgoing fiscal year. Gradual recovery likely in LSM sector, says FD Overall manufacturing growth slowed to 1.3 percent in FY 2025, compared to 3.0 percent last year. This deceleration was primarily driven by a contraction of 1.5 percent in LSM, compared to a modest growth of 0.9 percent in the previous year. In contrast, SSM and Slaughtering grew by 8.8 percent and 6.3 percent, respectively, providing some support to the sector. This marks the third consecutive year of negative growth in LSM, which can be attributed to ongoing structural challenges, elevated input costs, and downturns in critical sectors such as Food, Chemicals, Iron & Steel, and Electrical Equipment. Despite the overall lacklustre performance, nearly half of the LSM sectors demonstrated positive growth, including significant industries such as Wearing Apparel, Textiles, Coke & Petroleum Products, Pharmaceuticals, and Automobiles, according to the survey. However, in March 2025, the growth of LSM registered a Year-on-Year (YoY) increase of 1.8 percent, in contrast to a growth rate of 1.7 percent during the same month in the previous year. On a Month-on-Month (MoM) basis, LSM experienced a decline of 4.6 percent in March2025, following a drop of 5.6 percent in February 2025. The LSM, based on the Quantum Index of Manufacturing (QIM), declined by 1.53 percent during current fiscal 2025, compared to a growth of 0.94 percent last year. The slowdown reflects mixed performance across key industries - declines were observed in chemicals (-5.51%), iron and steel (-10.94%), electrical equipment (-15.89%), and fabricated metal products (-17.16%), while strong growth was recorded in automobiles (40.0%), wearing apparel (7.62%), textiles (2.15%), and petroleum products (4.48%) High input costs, and elevated tax rates, continued to pose headwinds to LSM growth. Copyright Business Recorder, 2025
Business Recorder
17-05-2025
- Business
- Business Recorder
Jul-Mar LSMI output grows 1.47% YoY
ISLAMABAD: The overall Large Scale Manufacturing Industries sector has shown a growth of 1.47 per cent during July-March 2024-25 when compared with the same period of last year, says the Pakistan Bureau of Statistics (PBS). QIM estimated for March, 2025 is 117.20. The LSMI output increased by 1.79 per cent for March 2025 when compared with March 2024 and decreased by 4.64per cent when compared with February 2025. The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for March, 2025 with base year 2015-16 have been developed on the basis of latest data supplied by the source agencies. Jul-Feb FY25: LSM sector contracts 1.90pc According to the provisional quantum index numbers of the overall Large Scale Manufacturing Sector has shown a growth of 1.47per cent during July- March 2024-25 when compared with the same period of last estimated for July-March, 2024-25 is 116.01. The main contributors towards overall growth of 1.47 per cent are tobacco (0.17 per cent), textile (0.35 per cent) garments (1.14 per cent), petroleum products (0.30 per cent), pharmaceuticals (0.13 per cent), automobiles (0.68 per cent), other transport equipment (0.14 per cent), food (0. 09 per cent), chemicals (0.45 per cent) non-metallic mineral products (0.68 per cent), cement (0.37 per cent), iron and steel products (0.51 per cent), electrical equipment (0.47 per cent), machinery and equipment (0.17 per cent) and furniture (1.94 per cent). The sectors showing growth during July-Mar 2024-25 compared to July-Mar 2023-24 are beverages 0.38 per cent, tobacco 23.76 per cent, textile 5.15 per cent, wearing apparel 0.41 per cent, leather products 4.33 per cent, wood products 8.36 per cent, paper and board 1.98 per cent, coke and petroleum products 4.47 per cent, pharmaceuticals 4.75 per cent, computer, electronics and optical products 8.15 per cent, automobiles 18.80 per cent, other transport equipment 27.40 per cent. The sectors showing decline during July-Mar 2024-25 compared to July-Mar 2023-24 are food 20.09 per cent, chemicals 6.83 per cent, chemicals products 19.36 per cent, fertilisers 0.87 per cent, rubber products 3.50 per cent, non-metallic mineral products 5.10 per cent, iron and steel products 4.24 per cent, fabricated metal 19.13 per cent, electrical equipment 9.21 per cent, machinery and equipment 71.74 per cent, furniture 59.81 per cent. Copyright Business Recorder, 2025
