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Pakistan’s Industrial Production Rises 9% in July 2025

In July 2025, the output of Large Scale Manufacturing Industries (LSMI) in Pakistan increased by 8.99% compared to July 2024, with a month-on-month rise of 2.60% from June 2025. Key contributors to this growth included food, garments, petroleum products, and automobiles, while sectors like beverages and chemicals saw declines. Overall, the industrial sector experienced a 9% year-on-year growth, indicating a positive shift in economic activity with increased output in manufacturing, energy, and construction-related goods.

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Pakistan’s Industrial Production Rises 9% in July 2025

جولائی 2025 میں، پاکستان میں بڑے پیمانے پر مینوفیکچرنگ انڈسٹریز (LSMI) کی پیداوار میں جولائی 2024 کے مقابلے میں 8.99 فیصد اضافہ ہوا، جون 2025 سے ماہانہ 2.60 فیصد اضافے کے ساتھ۔ مجموعی طور پر، صنعتی شعبے نے سال بہ سال 9% نمو کا تجربہ کیا، جو کہ مینوفیکچرنگ، توانائی، اور تعمیراتی سامان کی پیداوار میں اضافے کے ساتھ اقتصادی سرگرمیوں میں مثبت تبدیلی کی نشاندہی کرتا ہے۔

Key Drivers of Growth

Several factors contributed to the notable rise in industrial production:

  • Manufacturing Sector: Large-scale manufacturing (LSM) improved, particularly in food processing, textiles, pharmaceuticals, and automobiles. 
  • Energy and Power: Steady electricity supply and improved capacity utilization enhanced production in various industries. 
  • Construction: Increased demand in cement, steel, and related sectors was driven by infrastructure development and private housing projects. 
  • Exports: Growth in international orders for textiles, garments, and value-added products boosted industrial output.

Comparison with Last Year

In July of last year, industrial production had decreased because of energy shortages, inflationary challenges, and reduced demand in international markets. The current 9% increase indicates a robust recovery, fueled by enhanced policy support and stability in supply chains.

Sector-Wise Highlights

  • Textiles & Garments: Experienced advantages from robust international demand and government support. 
  • Automobile Industry: Noted an increase in vehicle assembly, particularly for compact cars and tractors. 
  • Pharmaceuticals: Saw a rise in production driven by greater domestic demand and export opportunities. 
  • Cement & Steel: Achieved double-digit growth, encouraged by heightened construction activities.

Economic Implications

The rise in industrial production is a positive sign for the economy as a whole. Greater industrial output not only bolsters GDP growth but also generates job opportunities, enhances exports, and boosts investor confidence. Experts suggest that if this pattern persists, it will contribute to economic stability in the face of inflationary pressures and challenges related to external financing.

​​Conclusion

The 9% increase in industrial production in July 2025 showcases a robust recovery in Pakistan’s economic activity, driven by vital sectors including food, textiles, automobiles, and construction materials. This outcome underscores the durability of the industrial foundation and indicates a trajectory toward lasting economic recovery. Nevertheless, ongoing policy support, a reliable energy supply, and stability in global markets will be essential for sustaining this positive trend.

جولائی 2025 میں صنعتی پیداوار میں 9 فیصد اضافہ پاکستان کی اقتصادی سرگرمیوں میں ایک مضبوط بحالی کو ظاہر کرتا ہے، جو خوراک، ٹیکسٹائل، آٹوموبائلز اور تعمیراتی مواد سمیت اہم شعبوں کے ذریعے کارفرما ہے۔ یہ نتیجہ صنعتی فاؤنڈیشن کی پائیداری کی نشاندہی کرتا ہے اور دیرپا معاشی بحالی کی طرف ایک رفتار کی نشاندہی کرتا ہے۔ بہر حال، اس مثبت رجحان کو برقرار رکھنے کے لیے جاری پالیسی سپورٹ، توانائی کی قابل اعتماد فراہمی، اور عالمی منڈیوں میں استحکام ضروری ہوگا۔

FAQ’s

What was the growth rate of industrial production in July 2025?
Industrial production increased by 8.99% year-on-year from July 2024 and rose 2.60% month-on-month from June 2025.

Which sectors contributed most to the growth?
Key contributors included food, garments, petroleum products, and automobiles, while sectors such as beverages and chemicals experienced declines.

Why is the rise in industrial production important for the economy?
It fosters GDP growth, creates job opportunities, boosts exports, and bolsters investor confidence.