FLASHNEWS:

Pakistan’s Large-Scale Manufacturing Sees Continued Decline

Karachi: Large Scale Manufacturing (LSM) in Pakistan has recorded a year-on-year decline of 3.8% in November 2024, marking the fourth instance of negative growth in the past six months. This downturn has contributed to a cumulative negative growth of 1.2% for the first five months of the fiscal year 2025.

According to a statement by JS Global, the Pakistan Bureau of Statistics (PBS) reports highlight ongoing challenges in various sectors, including Non-Metallic Minerals, Iron and Steel, and Chemical Products, which saw declines of 10%, 11%, and 10% respectively in November. These downward trends have raised concerns about the health of downstream industries connected to these sectors.

Despite the overall negative growth, there are signs of potential improvement. A disinflation trend is seen as a positive factor that could enhance demand and stabilize production in the future. However, rationalized imports and rising energy costs continue to pose significant risks to LSM growth prospects.

The report underscores the need for strategic measures to address these challenges and support the recovery of the manufacturing sector, which plays a crucial role in the country's economic framework.