Pakistan’s industrial output falls as major sectors struggle

ISLAMABAD: Pakistan’s large-scale manufacturing sector closed the fiscal year 2024-25 on a slightly weaker note, with output contracting by 0.74 percent, provisional figures from the Pakistan Bureau of Statistics (PBS) showed on Friday.

The Quantum Index of Manufacturing (QIM), which tracks industrial performance, averaged 114.82 for July to June, compared with the same period a year earlier. The decline reflects a year marked by uneven trends across key industries that shape the backbone of the economy.

Mixed performance across sectors

June 2025 offered a glimpse of this volatility. On a year-on-year basis, the index rose 4.14 percent to 112.95, suggesting some recovery. But when compared to May 2025, output fell 3.67 percent, pointing to lingering instability in industrial production.

Several industries managed to post gains despite the overall slowdown. Garments led the way with a contribution of 0.88 points, followed by automobiles at 0.85, textiles at 0.41, petroleum products at 0.37, and tobacco at 0.10. Pharmaceuticals and other transport equipment also added modestly to the tally.

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However, the momentum was pulled back by declines in some heavyweights. Furniture manufacturing saw the sharpest drop, cutting 1.59 points from the index. Non-metallic mineral products, cement, iron and steel, electrical equipment, chemicals, food, and machinery also reported notable contractions.

What the numbers mean

The QIM, based on 2015-16 as the base year, is closely watched as it serves as a barometer of Pakistan’s industrial health and broader economic outlook. While the small contraction may seem modest, it highlights the ongoing challenges faced by manufacturers in balancing rising costs, shifting demand, and weaker investment in some sectors.

Economists note that stronger showings in textiles, garments, and automobiles provide some hope. But with key construction-related industries like cement and iron and steel losing ground, the road to a steady industrial rebound remains uncertain.