Manufacturing sector grew by 1.3% in FY25: Economic Survey

June 09, 2025 (MLN): The outbreak of a challenging macroeconomic environment marked by import compression, rising input costs, exchange rate volatility, and energy constraints negatively impacted Pakistan’s industrial performance in FY 2024–25.

As a result, the manufacturing and mining sectors faced dismal outcomes during the outgoing fiscal year.

According to the Economic Survey of Pakistan 2024–25, overall manufacturing growth slowed to 1.3%, down from 3.0% last year, driven primarily by a 1.5% contraction in Large-Scale Manufacturing (LSM).

Despite signs of macroeconomic stabilization, structural bottlenecks and high production costs hindered recovery. Mining and quarrying also contracted by 3.4%, reflecting continued struggles in the extractive sector.

While some industries such as automobiles (+40%), wearing apparel (+7.6%), and textiles (+2.2%) recorded strong or improved growth due to export demand and improved macro conditions, the recovery was not broad-based.

Other key segments like chemicals (-5.5%), non-metallic minerals (-10.5%), iron & steel (-10.9%), and electrical equipment (-15.9%) dragged down overall industrial performance.

The furniture sector’s sharp 61.1% decline, and reduced activity in food processing (-0.5%) and pharmaceuticals (+2.3%) further added to the mixed picture.

Meanwhile, mining performance was also hit by a decline in key energy minerals, including crude oil (-14.8%), natural gas (-6.8%), and coal (-5.7%), although non-metallic minerals like sulphur (+341.9%), limestone (+34.1%), and marble (+20.2%) showed strong growth.

Sustained industrial growth depends on effective reforms and coordinated efforts to boost investment and streamline policies.

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