Pakistan Industrial Outlook - April 2025

As of April 2025, the Pakistan industrial sector is navigating a complex mix of challenges and emerging opportunities. From a decline in large-scale manufacturing to promising progress in mining and textiles, this period presents both caution and optimism.

Large-Scale Manufacturing Faces a Setback

The large-scale manufacturing index (LSMI) contracted by 1.9% during the first eight months of FY2024–25. February alone saw a year-on-year drop of 3.51% and a month-on-month fall of 5.9%. Rising input costs and global market volatility are contributing factors (source).

To stimulate the sector, the government reduced electricity tariffs by Rs7.59 per unit for industrial users (source).

PIA Privatization in Motion

The long-struggling Pakistan International Airlines (PIA) reported its first annual profit in over two decades. As part of economic reforms, the government is now seeking bids to privatize a 51–100% stake (source).

Expansion in the Mining Sector

Pakistan’s mineral wealth is gaining global attention. The Reko Diq copper-gold project, led by Barrick Gold, is seeking over $2 billion in international financing. Production is expected to commence in 2028, with long-term plans to scale to 90 million tons annually (source).

Simultaneously, the government is actively courting U.S. investors via the Pakistan Minerals Investment Forum (source).

Resilience in the Textile Industry

The textile sector showed strong potential with deals worth $550 million signed during Textile Asia 2025 in Karachi (source). The upcoming IGATEX Pakistan 2025 (April 24–26) will focus on automation and sustainability—key pillars for future growth (source).

Tariff Challenges and Trade Imbalance

The imposition of a 29% tariff on selected Pakistani exports by the United States is expected to impact foreign exchange earnings by $2.17 billion. To counterbalance, Pakistan is exploring crude oil imports worth $1 billion from the U.S. (source).

Conclusion

Despite the contraction in the Pakistan industrial sector, strategic initiatives—ranging from privatization and policy reform to foreign investment promotion—present a roadmap for recovery. April 2025 has laid the groundwork for what could become a transformational year.