The private large-scale manufacturing sector in Pakistan, along with the increase in unemployment and national wage, poses challenges to the government’s claims on industrial growth data. Despite the government’s positive outlook on the economy, concerns persist due to public discontent. Islamabad asserts a growth in Gross Domestic Product (GDP), with reported figures for 2024-25 and the first quarter of the fiscal year.
Complaints from the LSM private sector have cast doubt on the data accuracy, citing issues like high input costs due to electricity cross subsidies and smuggling concerns. Various industry associations have reported closures of units, impacting sectors like textiles, garments, and steel production. Notably, cement dispatches saw a decline in November 2025, despite an overall rise in total dispatches earlier in the year.
The rise in unemployment rates, reaching nearly 8 percent, has been observed across all age groups in Pakistan. The formal sector’s share in employment remains low, raising concerns about job stability and economic conditions. Inflation rates have fluctuated significantly over the years, reflecting challenges in maintaining purchasing power amid economic shifts.
