Large-Scale Manufacturing in city Sees 2% Growth in March, Marking Fourth Consecutive Month of Gains

Karachi, Large-scale manufacturing (LSM) has recorded a 2.0% year-over-year growth in March 2024, continuing its upward trend for the fourth consecutive month. However, the nine-month fiscal year 2024 (9MFY24) figures remained nearly flat with a marginal decline of 0.1%. This period has seen varying performance across sectors, with significant gains in textiles and petroleum, offset by declines in food and beverages.

According to JS Global, the growth in March was primarily driven by notable improvements in key sectors such as textiles, which saw a 5.2% increase, and coke and petroleum products, which jumped by 6.7%. The fertilizer sector also showed substantial growth with a 25% increase. These gains contrast with significant drops in food and beverages, which continue to face downward pressure, reporting declines of 6% and 27% respectively.

The LSM’s performance over the fiscal year has been impacted by rising energy costs, which have suppressed demand and dampened overall economic activity. Despite these challenges, the sector managed to post gains in the last four months, bringing the 9MFY24 figures to a level comparable to the previous year. The report anticipates potential growth stimuli from expected rate cuts, following recent decreases in inflation and secondary market yields, although continued import controls may temper LSM growth.

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