Big Industry Contracts Decline 0.74% in FY25

ISLAMABAD: The Large-Scale Manufacturing (LSM) sector recorded a contraction of 0.74 per cent in the outgoing FY25 compared to the previous fiscal year, falling short of the growth target of 3.5pc, according to data released by the Pakistan Bureau of Statistics on Friday.

The LSM, which contributes around 8pc to the national GDP, had contracted by 0.03pc in FY24, following a growth of 0.92pc in the preceding year.

In June 2025, LSM posted a 4.14pc year-on-year (YoY) growth, the fourth consecutive month of positive growth, mainly due to a reduction in the key interest rate to 11pc earlier in the fiscal year. However, on a month-on-month (MoM) basis, LSM showed a decline of 3.67pc in June.

The food sector, a significant component of LSM, declined by 1.83pc YoY in FY25. However, wheat and rice milling experienced a 6.38pc rise, while starch production rose 0.59pc. Vegetable ghee production dropped by 0.94pc, cooking oil by 0.33pc, and tea by 2.76pc.

Food, steel and energy weigh, while automobiles and textiles shine

The textile sector performed better, growing by 2.49pc YoY. Cotton yarn production rose by 7.59pc, and cotton cloth by 0.68pc, together making up more than 80pc of the textile sector’s output. Garment exports surged by 5.70pc.

The coke and petroleum products sector grew of 5.33pc. Petrol output increased by 1.68pc, high-speed diesel by 10.96pc, and kerosene by 23.88pc. However, LPG production fell by 1.59pc, and jet fuel oil dropped by 10.19pc.

The automobile sector exhibited robust growth, expanding by 46.15pc YoY, primarily driven by a 41.99pc increase in cars and jeeps, a 157.73pc rise in light commercial vehicles (LCVs), and 100pc growth in trucks. Bus production also grew by 66.41pc, though diesel engine production declined by 6.05pc.

The pharmaceutical sector recorded a growth of 2.74pc, while fertiliser production saw a modest increase of 1.69pc.On the downside, the iron and steel sector contracted by 8.71pc, with billets/ingots, used mainly in construction, falling by 21.86pc.

Production of hot-rolled sheets, strips, coils, and plates decreased by 1.98pc. Rubber products, non-metallic minerals, and electrical equipment also experienced declines, with respective decreases of 1.27pc, 7.88pc, and 11.65pc.

Published in Dawn, August 16th, 2025