Big industry output narrows 3.7% in December

February 19, 2025 (MLN): The large-scale manufacturing (LSM) sector of Pakistan recorded a decline of 3.73% in December 2024 compared to last year, the Pakistan Bureau of Statistics (PBS) reported Wednesday.

On a monthly basis, it increased  19.07% compared to November's 107.09 points.

Cumulatively in the six months of fiscal year 2024-25, the LSM showed a contraction of 1.87% year-on-year.

The main contributors towards overall growth of -1.87% are, Food (-0.13), Tobacco (0.25), Textile (0.36) Garments (1.43), Petroleum Products (-0.02), Automobiles (0.77), Cement (-0.55), Iron & Steel Products (-0.59), Electrical Equipment (-0.60), Machinery and Equipment (-0.15) and Furniture (-2.27).

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

The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for December 2024 with the base year 2015-16 have been developed based on latest data supplied by the source agencies.

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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