Big industry output narrows 1.22% in Jan

March 17, 2025 (MLN): The large-scale manufacturing (LSM) sector of Pakistan recorded a decline of 1.22% in January 2025 to 129.86 compared to last year, the Pakistan Bureau of Statistics (PBS) reported today.

On a monthly basis, it increased  2.09% compared to December's 127.20 points.

Cumulatively in the seven months of fiscal year 2024-25, the LSM showed a contraction of 1.78% year-on-year.

The main contributors towards overall growth of -1.78% are, Food (-0.47), Tobacco (0.25), Textile (0.34) Garments (1.55), Petroleum Products (0.17), Automobiles (0.74), Cement (-0.46), Iron & Steel Products (-0.57), Electrical Equipment (-0.55), Machinery and Equipment (-0.14) and Furniture (-2.16).

The production in July-January 2024-25 as compared to July-January 2023-24 has increased in Tobacco, Textile, wearing apparel, Automobiles and Other Transport Equipment while it Decreased in Food, Chemical Products, Non Metallic Mineral Products, Iron & Steel Products, Electrical Equipment, Machinery and Equipment, and Furniture.

The performance of LSM 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% of manufacturing — a sub-component of Industry — and about 8% 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.

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