The Large-Scale Manufacturing (LSM) sector in Pakistan recorded a contraction of 1.25% during the first five months of the fiscal year 2024-25 (July-November) compared to the same period last year, according to data released by the Pakistan Bureau of Statistics (PBS).

In November 2024, the LSMI output declined by 3.81% compared to November 2023 and by 1.19% compared to October 2024. The provisional quantum indices of Large-Scale Manufacturing Industries (LSMI) for November 2024, with the base year 2015-16, were developed using data from the Oil Companies Advisory Council (OCAC), Ministry of Industries and Production, Ministry of Commerce, and Provincial Bureaus of Statistics (BoS).

The LSMI quantum index number (QIM) for November 2024 was estimated at 107.97, while the QIM for the July-November period of FY25 stood at 109.33.

Sectoral Performance

The main contributors to the overall decline of 1.25% included:

Food (+0.23%)
Tobacco (+0.39%)
Textile (+0.40%)
Garments (+1.76%)
Petroleum Products (-0.18%)
Automobiles (+0.78%)
Cement (-0.61%)
Iron & Steel Products (-0.62%)
Electrical Equipment (-0.64%)
Machinery and Equipment (-0.25%)
Furniture (-2.24%)

Production during July-November 2024-25 increased in sectors such as food, tobacco, textiles, garments, automobiles, and other transport equipment. However, declines were observed in coke and petroleum products, chemical products, non-metallic mineral products, iron and steel products, electrical equipment, machinery and equipment, and furniture.

The contraction in LSM output reflects ongoing challenges in the industrial sector, including high production costs, weak demand, and economic uncertainty. The government and industry stakeholders will need to address these issues to revive growth in the manufacturing sector.