Karachi: Large Scale Manufacturing (LSM) in Pakistan marked a 1.8% year-on-year increase in March 2025, according to a report by the Pakistan Bureau of Statistics. This growth comes after four consecutive months of decline, indicating a potential recovery for the sector.

Despite the year-on-year growth, the report noted a month-on-month decline in output for March. However, several key sectors showed significant improvement. The textiles sector recorded a 5.2% year-on-year increase, while the food sector surged by 20.1%. Within the food industry, wheat production, which has the largest weight, rose by 8.1%.

The report also highlighted the impact of a declining inflation trend, which has been favorable for LSM growth. Lower input costs, improved demand, and stabilized production are among the benefits. Additionally, recent monetary easing is anticipated to further bolster growth prospects for the large-scale manufacturing sector.

The findings were sourced from JS Global, and they reflect an optimistic outlook for the industry as it navigates the challenges posed by previous months of contraction.