While Pakistan's manufacturing sector powers 12.9% of the nation's GDP and directly employs over 4.5 million people, a closer look reveals an industry pulsing with both resilient growth and sobering challenges, as shown by the textile sector's $19.3 billion in exports contrasting with a year-on-year 6.0% decline in the Quantum Index of Manufacturing.
Key Takeaways
- Pakistan's Large Scale Manufacturing (LSM) sector grew by 0.3% year-on-year in July 2023, with the LSM index standing at 132.8 points
- The manufacturing sector contributed 12.9% to Pakistan's GDP in FY2023, employing over 4.5 million people directly
- Quantum Index of Manufacturing (QIM) for FY2022-23 showed a decline of 6.0% compared to previous year
- The food and beverages sub-sector grew by 8.2% in LSM index during FY2023
- Pakistan's textile industry employs 15 million people, contributing 8.5% to GDP in FY2023
- Textiles account for 60% of Pakistan's total exports valued at $19.3 billion in FY2023
- Cotton yarn exports reached 1.2 million tons worth $3.5 billion in 2022-23
- Pakistan cement industry has 24 plants with capacity of 76 million tons per annum in 2023
- Cement dispatches reached 47.1 million tons in FY2023, up 10% YoY
- Exports of cement were 9.2 million tons valued at $500 million in FY2023
- Pakistan steel industry produced 5.8 million tons of billets in FY2023
- Long steel production reached 4.2 million tons, up 8% YoY in 2023
- Pakistan Steel Mills (PSM) capacity 1.1 million tons but utilization <10% in 2023
- Pakistan pharmaceutical industry has 700 units producing 80% of domestic demand
- Pharma exports reached $350 million in FY2023, up 25% YoY
While overall manufacturing growth is modest, key export sectors like textiles and cement show strong performance.
Cement
- Pakistan cement industry has 24 plants with capacity of 76 million tons per annum in 2023
- Cement dispatches reached 47.1 million tons in FY2023, up 10% YoY
- Exports of cement were 9.2 million tons valued at $500 million in FY2023
- North region cement capacity 40 million tons, South 36 million tons as of 2023
- Clinker production was 42 million tons in FY2023
- Cement industry consumes 25% of coal imports, 8 million tons annually
- 18 million tons of cement dispatched to domestic market in FY2023
- Lucky Cement is largest producer with 12.5 million tons capacity
- Bestway Cement exports 2 million tons to Afghanistan/Iran
- DG Khan Cement capacity 14 million tons post-expansion in 2023
- Cement bag production 10 billion units annually by industry
- Industry employs 150,000 directly and 500,000 indirectly in 2023
- Power consumption by cement plants 7,000 MW equivalent in FY2023
- Alternative fuels usage 15% in cement kilns for sustainability
- Fauji Cement production 5.5 million tons in FY2023
- Maple Leaf Cement exports 1 million tons annually
- Cement prices averaged PKR 1,200 per bag in North, PKR 1,100 South in 2023
- White cement production capacity 1 million tons by 3 plants
- PPC cement share 60% of total production in FY2023
- Cheema Cement capacity 3.5 million tons post-upgrade
- Cement transport by 50,000 trucks daily across Pakistan
- Gharibwal Cement exports to Sri Lanka/India region
Cement Interpretation
Pakistan's cement industry is building the nation at a brisk pace, packing its 10 billion annual bags with impressive economic muscle, yet it clearly has room to pour even more, given it's currently running at only about 62% of its colossal 76-million-ton capacity.
Chemicals
- Pakistan pharmaceutical industry has 700 units producing 80% of domestic demand
- Pharma exports reached $350 million in FY2023, up 25% YoY
- Drug registrations total 25,000 including 15,000 local formulations in 2023
- Active Pharmaceutical Ingredients (API) import dependency 90%, $400 million annually
- Generic medicines production covers 85% of market needs
- Vaccine production capacity 100 million doses by local firms in 2023
- Getz Pharma is largest with turnover PKR 50 billion in FY2023
- Biopharmaceutical investments $200 million in last 5 years
- Herbal medicines market size PKR 20 billion growing 15% annually
- Tablet production 10 billion units per year by industry
- Injectables manufacturing 500 million units capacity
- Packaging materials local production 70% for pharma
- R&D expenditure 0.5% of sales in pharma sector 2023
- High-tech API plant by CCL Pharma capacity 1,000 tons paracetamol
- Hepatitis C drugs produced locally saving $100 million imports
- Ophthalmic products 200 million units annual production
- Oral liquids manufacturing 1 billion bottles capacity
- Suppository production 100 million units by 20 firms
- Chemical industry output value PKR 1.2 trillion in FY2023
- Fertilizer production 8.5 million tons against 6 million demand in 2023
Chemicals Interpretation
While Pakistan's pharmaceutical industry cleverly pumps out generic pills and vaccines like a caffeinated octopus, its stubborn 90% reliance on imported ingredients is the persistent and expensive cough it just can't seem to shake.
LSM
- The food and beverages sub-sector grew by 8.2% in LSM index during FY2023
LSM Interpretation
While Pakistanis may be savoring their biryani and chai a little more these days, this robust 8.2% growth in food and beverages is a serious indicator of consumer resilience and a hungry, if inflation-pressed, domestic economy.
Manufacturing
- Pakistan's Large Scale Manufacturing (LSM) sector grew by 0.3% year-on-year in July 2023, with the LSM index standing at 132.8 points
- The manufacturing sector contributed 12.9% to Pakistan's GDP in FY2023, employing over 4.5 million people directly
- Quantum Index of Manufacturing (QIM) for FY2022-23 showed a decline of 6.0% compared to previous year
- In 2022, Pakistan's manufacturing value added was $38.47 billion USD
- Small and Medium Enterprises (SMEs) account for 40% of manufacturing output and 48% of employment in the sector
- Manufacturing electricity consumption reached 25,000 GWh in FY2022
- Export-oriented manufacturing units numbered 5,200 in 2023, contributing $20 billion in exports
- Automotive manufacturing produced 156,000 units in FY2023, down 12% YoY
- Pharmaceutical manufacturing output value was PKR 800 billion in 2023
- Leather products manufacturing exported $450 million in FY2023
- Engineering goods manufacturing grew by 5% in 2022-23
- Plastic products manufacturing capacity is 2.5 million tons annually
- Tobacco manufacturing revenue was PKR 250 billion in FY2023
- Paper and board production reached 1.8 million tons in 2022
- Fertilizer manufacturing capacity utilization was 85% in FY2023
- Sugar manufacturing produced 6.8 million tons in crushing season 2022-23
- Cotton yarn manufacturing output was 2.2 million bales in 2023
- Vegetable ghee production was 1.2 million tons in FY2023
- Cement manufacturing capacity stands at 76 million tons per annum as of 2023
- Steel production in mini-mills was 5.5 million tons in FY2023
- Chemical manufacturing exports reached $1.2 billion in 2023
- Electronics manufacturing turnover was PKR 150 billion in 2022
- Furniture manufacturing employs 500,000 workers in Punjab alone
- Glass manufacturing production was 400,000 tons in 2023
- Tyres manufacturing produced 12 million units in FY2023
- Paint manufacturing industry has 50 major players with capacity 800,000 tons
- Marble processing units number 3,000 producing 10 million tons annually
- Shipbuilding manufacturing output value PKR 20 billion in 2023
- Bicycle manufacturing produced 800,000 units exported to 50 countries
Manufacturing Interpretation
Pakistan's manufacturing sector, a massive employer and GDP contributor currently moving at a near-glacial 0.3% pace, resembles a vast, sputtering engine where the vital small and medium enterprise pistons are firing, yet major cylinders like autos and overall output are coughing on a 6% annual decline, all while consuming enough electricity to power a small continent.
Steel
- Pakistan steel industry produced 5.8 million tons of billets in FY2023
- Long steel production reached 4.2 million tons, up 8% YoY in 2023
- Pakistan Steel Mills (PSM) capacity 1.1 million tons but utilization <10% in 2023
- Rebar production dominated by 50 EAF mini-mills
- Scrap imports for steel making 3.5 million tons valued $2 billion in FY2023
- Amreli Steels produced 800,000 tons of steel bars in 2023
- Steel consumption per capita 45 kg in Pakistan vs global 220 kg in 2023
- MS billets exports 500,000 tons mainly to Bangladesh
- Wire rod production 1.1 million tons in FY2023
- Steel industry employs 200,000 workers across 60 units
- Mughal Steel capacity 500,000 tons integrated plant
- Energy consumption in steel sector 40% coal, 60% gas in 2023
- Flat steel products production limited to 200,000 tons by cold rolling mills
- Agha Steel expansion to 1 million tons billet capacity by 2024
- Steel prices averaged PKR 220,000 per ton for rebar in 2023
- Galvanized steel sheets production 300,000 tons annually
- Alloy steel output 50,000 tons for engineering sector
- Steel pipes manufacturing capacity 1 million tons by 100 units
- Heavy machinery steel fabrication 100,000 tons per year
- Spring steel production 20,000 tons for auto sector
Steel Interpretation
Pakistan's steel industry is a tale of two furnaces: a dynamic, scrappy private sector of mini-mills is busily building the nation, while the colossal, state-owned white elephant gathers rust, watching from the sidelines as the country's own steel appetite remains a mere snack compared to the global average.
Textiles
- Pakistan's textile industry employs 15 million people, contributing 8.5% to GDP in FY2023
- Textiles account for 60% of Pakistan's total exports valued at $19.3 billion in FY2023
- Cotton yarn exports reached 1.2 million tons worth $3.5 billion in 2022-23
- Readymade garments exports grew 5% to $5.5 billion in FY2023
- There are 13,000 textile units including 450 mills and 22 million spindles installed
- Fabric production capacity is 1 billion sq meters per month in 2023
- Home textiles exports were $2.8 billion, 15% of total exports in FY2023
- Towel exports from Pakistan reached $450 million in 2023
- Denim fabric production is 250 million meters annually by 50 mills
- Synthetic yarn production increased 10% to 300,000 tons in FY2023
- Bedwear exports accounted for $1.2 billion in 2022-23
- Knitwear exports grew to $2.4 billion, up 8% YoY in FY2023
- Carpet and rugs exports were $350 million in 2023
- Jute products manufacturing output 100,000 tons annually
- Silk production limited to 1,000 tons but imports processed 5,000 tons
- Textile machinery imports worth $500 million in FY2023 for modernization
- Apparel sector has 5,000 stitching units employing 2 million workers
- Grey fabric production 800 million meters per month capacity
- Dyed/printed fabric exports $1.5 billion in FY2023
- Hosiery exports reached $800 million, growing 12% in 2023
- Canvas and tarpaulin production 50 million sq meters annually
- Woolen textiles output declined 5% due to raw material shortage in 2023
- Tent and canvas exports $100 million from Faisalabad cluster
- Embroidered garments exports up 15% to $300 million in FY2023
- Textile waste recycling processes 200,000 tons per year
- Pakistan has 1,200 shuttleless looms operational in 2023
- Garment cities host 500 units producing for EU/US markets
Textiles Interpretation
Pakistan's textile industry spins the very fabric of its economy, employing a workforce the size of a small country to clothe the world and stitch together nearly two-thirds of its export earnings.
Sources & References
- Reference 1PBSpbs.gov.pkVisit source
- Reference 2FINANCEfinance.gov.pkVisit source
- Reference 3DATAdata.worldbank.orgVisit source
- Reference 4SBPsbp.org.pkVisit source
- Reference 5NEPRAnepra.org.pkVisit source
- Reference 6TDAPtdap.gov.pkVisit source
- Reference 7PAMApama.org.pkVisit source
- Reference 8DRAdra.gov.pkVisit source
- Reference 9PBCpbc.org.pkVisit source
- Reference 10PPMAppma.org.pkVisit source
- Reference 11FBRfbr.gov.pkVisit source
- Reference 12PAPIpapi.org.pkVisit source
- Reference 13NFMLnfml.com.pkVisit source
- Reference 14PCGApcga.org.pkVisit source
- Reference 15APCMAapcma.comVisit source
- Reference 16PSMApsma.org.pkVisit source
- Reference 17PEPApepa.org.pkVisit source
- Reference 18PUNJABpunjab.gov.pkVisit source
- Reference 19GPMAgpma.com.pkVisit source
- Reference 20APTTAaptta.org.pkVisit source
- Reference 21PPAppa.org.pkVisit source
- Reference 22PMApma.org.pkVisit source
- Reference 23KHIPORTkhiport.gov.pkVisit source
- Reference 24PBApba.org.pkVisit source
- Reference 25PTApta.org.pkVisit source
- Reference 26APTMAaptma.org.pkVisit source
- Reference 27ETHPethp.org.pkVisit source
- Reference 28PTEANEWpteanew.org.pkVisit source
- Reference 29PDMApdma.org.pkVisit source
- Reference 30PAKKNITWEARpakknitwear.comVisit source
- Reference 31PJMApjma.org.pkVisit source
- Reference 32NGTEngte.gov.pkVisit source
- Reference 33PHMAphma.com.pkVisit source
- Reference 34PWMApwma.org.pkVisit source
- Reference 35FTEAftea.pkVisit source
- Reference 36PGIApgia.org.pkVisit source
- Reference 37PDMApdma.gov.pkVisit source
- Reference 38LUCKYCEMENTluckycement.comVisit source
- Reference 39BESTWAYCEMENTbestwaycement.comVisit source
- Reference 40DGCEMENTdgcement.comVisit source
- Reference 41PBMApbma.com.pkVisit source
- Reference 42PPPIpppi.org.pkVisit source
- Reference 43FAUJICEMENTfaujicement.com.pkVisit source
- Reference 44MAPLELEAFCEMENTmapleleafcement.comVisit source
- Reference 45KOHATCEMENTkohatcement.comVisit source
- Reference 46CHEEMACEMENTcheemacement.comVisit source
- Reference 47GHARIBWALCEMENTgharibwalcement.comVisit source
- Reference 48PAKSTEELpaksteel.com.pkVisit source
- Reference 49AMRELISTEELSamrelisteels.comVisit source
- Reference 50WORLDSTEELworldsteel.orgVisit source
- Reference 51MUGHEALISmughealis.comVisit source
- Reference 52OGRAogra.org.pkVisit source
- Reference 53AGHASTEELaghasteel.comVisit source
- Reference 54GSMAgsma.org.pkVisit source
- Reference 55HEVIhevi.org.pkVisit source
- Reference 56NCPncp.com.pkVisit source
- Reference 57GETZPHARMAgetzpharma.comVisit source
- Reference 58HIPMAhipma.org.pkVisit source
- Reference 59PPPApppa.org.pkVisit source
- Reference 60CCLPHARMAcclpharma.comVisit source
- Reference 61WHOwho.intVisit source