Pakistan's large-scale manufacturing grows 1.79% in March

• March LSM output down 4.64% from February 2025.
• Iron and steel contracted 4.24% year-on-year in March.
• Sugar output rose 67% year-on-year during March.

ISLAMABAD: Pakistan’s large-scale manufacturing (LSM) sector posted a year-on-year growth of 1.79% in March 2025, The News reported, citing Pakistan Bureau of Statistics (PBS).

According to data released on Thursday, despite this improvement on a monthly basis, the sector saw a contraction of 1.47% over the July–March period of the ongoing fiscal year 2024–25 when compared to the same period last year, reflecting persistent headwinds for major industries.

Within this nine-month span, notable increases were recorded in the production of tobacco, textiles, wearing apparel, coke and petroleum products, automobiles, and other transport equipment. 

However, output declined in several key segments including food, chemical products, non-metallic mineral products, iron and steel, electrical equipment, machinery and equipment, and furniture.

The LSM sector is crucial to Pakistan’s economy, accounting for 69.3% of the country’s total manufacturing and contributing 8.2% to the gross domestic product (GDP).

Despite the year-on-year growth, the sector posted a month-on-month contraction of 4.64% from February 2025. However, manufacturing activity continues to face significant challenges that are impeding broader sectoral growth.

Comparing the March 2025 performance with March 2024, several major industries faced a sharp decline. The iron and steel sector saw a contraction of 4.24%, machinery and equipment 71.7%, and fabricated metals output shrank by 19.1%.

Despite the overall contraction, some sectors posted gains on a year-on-year basis. Textiles output surged by 5.15%, automobiles by 18.8%, leather products increased by 4.33%, and pharmaceuticals 4.75%.

Other sectors that reported growth included coke and petroleum products, up by 4.47%, computer, electronics and optical products by 8.15%, food 20%, and sugar by 67%. Cotton yarn output rose by 8.8%, and cotton cloth production increased by 0.74%.