Pakistan’s Large Scale Manufacturing (LSM) Sector Experiences Decline in October 2023, Raising Concerns for Fiscal Year 2024

Karachi, Pakistan’s Large Scale Manufacturing (LSM) sector experienced a downturn in October 2023, recent report by the Pakistan Bureau of Statistics (PBS). After two consecutive months of positive growth, LSM registered a 4.1% year-on-year decline in October, with a 2.0% month-on-month decrease in output observed.

According to JS Global, the report highlighted that the LSM sector’s downturn is attributed to consolidation measures that have resulted in reduced demand, coupled with rising energy prices for industries. These factors are expected to continue affecting LSM growth negatively in the upcoming months. The report further indicated that following the October 2023 decline, the LSM growth for the first four months of the fiscal year 2024 (4MFY24) dipped into negative territory, recording a -0.4% growth rate.

JS Research analysts anticipate that the LSM sector will remain under significant pressure throughout the fiscal year 2024 if these systemic issues are not addressed. The challenges faced by the sector point to broader economic concerns that may impact industrial output and overall economic growth in Pakistan.

The post Pakistan’s Large Scale Manufacturing (LSM) Sector Experiences Decline in October 2023, Raising Concerns for Fiscal Year 2024 appeared first on Pakistan Business News.