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
1Pakistan cement industry has 24 plants with capacity of 76 million tons per annum in 2023
Verified2Cement dispatches reached 47.1 million tons in FY2023, up 10% YoY
Verified3Exports of cement were 9.2 million tons valued at $500 million in FY2023
Verified4North region cement capacity 40 million tons, South 36 million tons as of 2023
Directional5Clinker production was 42 million tons in FY2023
Single source6Cement industry consumes 25% of coal imports, 8 million tons annually
Verified718 million tons of cement dispatched to domestic market in FY2023
Verified8Lucky Cement is largest producer with 12.5 million tons capacity
Verified9Bestway Cement exports 2 million tons to Afghanistan/Iran
Directional10DG Khan Cement capacity 14 million tons post-expansion in 2023
Single source11Cement bag production 10 billion units annually by industry
Verified12Industry employs 150,000 directly and 500,000 indirectly in 2023
Verified13Power consumption by cement plants 7,000 MW equivalent in FY2023
Verified14Alternative fuels usage 15% in cement kilns for sustainability
Directional15Fauji Cement production 5.5 million tons in FY2023
Single source16Maple Leaf Cement exports 1 million tons annually
Verified17Cement prices averaged PKR 1,200 per bag in North, PKR 1,100 South in 2023
Verified18White cement production capacity 1 million tons by 3 plants
Verified19PPC cement share 60% of total production in FY2023
Directional20Cheema Cement capacity 3.5 million tons post-upgrade
Single source21Cement transport by 50,000 trucks daily across Pakistan
Verified22Gharibwal Cement exports to Sri Lanka/India region
VerifiedCement 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
1Pakistan pharmaceutical industry has 700 units producing 80% of domestic demand
Verified2Pharma exports reached $350 million in FY2023, up 25% YoY
Verified3Drug registrations total 25,000 including 15,000 local formulations in 2023
Verified4Active Pharmaceutical Ingredients (API) import dependency 90%, $400 million annually
Directional5Generic medicines production covers 85% of market needs
Single source6Vaccine production capacity 100 million doses by local firms in 2023
Verified7Getz Pharma is largest with turnover PKR 50 billion in FY2023
Verified8Biopharmaceutical investments $200 million in last 5 years
Verified9Herbal medicines market size PKR 20 billion growing 15% annually
Directional10Tablet production 10 billion units per year by industry
Single source11Injectables manufacturing 500 million units capacity
Verified12Packaging materials local production 70% for pharma
Verified13R&D expenditure 0.5% of sales in pharma sector 2023
Verified14High-tech API plant by CCL Pharma capacity 1,000 tons paracetamol
Directional15Hepatitis C drugs produced locally saving $100 million imports
Single source16Ophthalmic products 200 million units annual production
Verified17Oral liquids manufacturing 1 billion bottles capacity
Verified18Suppository production 100 million units by 20 firms
Verified19Chemical industry output value PKR 1.2 trillion in FY2023
Directional20Fertilizer production 8.5 million tons against 6 million demand in 2023
Single sourceChemicals 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
1The food and beverages sub-sector grew by 8.2% in LSM index during FY2023
VerifiedLSM 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
1Pakistan'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
Verified2The manufacturing sector contributed 12.9% to Pakistan's GDP in FY2023, employing over 4.5 million people directly
Verified3Quantum Index of Manufacturing (QIM) for FY2022-23 showed a decline of 6.0% compared to previous year
Verified4In 2022, Pakistan's manufacturing value added was $38.47 billion USD
Directional5Small and Medium Enterprises (SMEs) account for 40% of manufacturing output and 48% of employment in the sector
Single source6Manufacturing electricity consumption reached 25,000 GWh in FY2022
Verified7Export-oriented manufacturing units numbered 5,200 in 2023, contributing $20 billion in exports
Verified8Automotive manufacturing produced 156,000 units in FY2023, down 12% YoY
Verified9Pharmaceutical manufacturing output value was PKR 800 billion in 2023
Directional10Leather products manufacturing exported $450 million in FY2023
Single source11Engineering goods manufacturing grew by 5% in 2022-23
Verified12Plastic products manufacturing capacity is 2.5 million tons annually
Verified13Tobacco manufacturing revenue was PKR 250 billion in FY2023
Verified14Paper and board production reached 1.8 million tons in 2022
Directional15Fertilizer manufacturing capacity utilization was 85% in FY2023
Single source16Sugar manufacturing produced 6.8 million tons in crushing season 2022-23
Verified17Cotton yarn manufacturing output was 2.2 million bales in 2023
Verified18Vegetable ghee production was 1.2 million tons in FY2023
Verified19Cement manufacturing capacity stands at 76 million tons per annum as of 2023
Directional20Steel production in mini-mills was 5.5 million tons in FY2023
Single source21Chemical manufacturing exports reached $1.2 billion in 2023
Verified22Electronics manufacturing turnover was PKR 150 billion in 2022
Verified23Furniture manufacturing employs 500,000 workers in Punjab alone
Verified24Glass manufacturing production was 400,000 tons in 2023
Directional25Tyres manufacturing produced 12 million units in FY2023
Single source26Paint manufacturing industry has 50 major players with capacity 800,000 tons
Verified27Marble processing units number 3,000 producing 10 million tons annually
Verified28Shipbuilding manufacturing output value PKR 20 billion in 2023
Verified29Bicycle manufacturing produced 800,000 units exported to 50 countries
DirectionalManufacturing 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
1Pakistan steel industry produced 5.8 million tons of billets in FY2023
Verified2Long steel production reached 4.2 million tons, up 8% YoY in 2023
Verified3Pakistan Steel Mills (PSM) capacity 1.1 million tons but utilization <10% in 2023
Verified4Rebar production dominated by 50 EAF mini-mills
Directional5Scrap imports for steel making 3.5 million tons valued $2 billion in FY2023
Single source6Amreli Steels produced 800,000 tons of steel bars in 2023
Verified7Steel consumption per capita 45 kg in Pakistan vs global 220 kg in 2023
Verified8MS billets exports 500,000 tons mainly to Bangladesh
Verified9Wire rod production 1.1 million tons in FY2023
Directional10Steel industry employs 200,000 workers across 60 units
Single source11Mughal Steel capacity 500,000 tons integrated plant
Verified12Energy consumption in steel sector 40% coal, 60% gas in 2023
Verified13Flat steel products production limited to 200,000 tons by cold rolling mills
Verified14Agha Steel expansion to 1 million tons billet capacity by 2024
Directional15Steel prices averaged PKR 220,000 per ton for rebar in 2023
Single source16Galvanized steel sheets production 300,000 tons annually
Verified17Alloy steel output 50,000 tons for engineering sector
Verified18Steel pipes manufacturing capacity 1 million tons by 100 units
Verified19Heavy machinery steel fabrication 100,000 tons per year
Directional20Spring steel production 20,000 tons for auto sector
Single sourceSteel 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
1Pakistan's textile industry employs 15 million people, contributing 8.5% to GDP in FY2023
Verified2Textiles account for 60% of Pakistan's total exports valued at $19.3 billion in FY2023
Verified3Cotton yarn exports reached 1.2 million tons worth $3.5 billion in 2022-23
Verified4Readymade garments exports grew 5% to $5.5 billion in FY2023
Directional5There are 13,000 textile units including 450 mills and 22 million spindles installed
Single source6Fabric production capacity is 1 billion sq meters per month in 2023
Verified7Home textiles exports were $2.8 billion, 15% of total exports in FY2023
Verified8Towel exports from Pakistan reached $450 million in 2023
Verified9Denim fabric production is 250 million meters annually by 50 mills
Directional10Synthetic yarn production increased 10% to 300,000 tons in FY2023
Single source11Bedwear exports accounted for $1.2 billion in 2022-23
Verified12Knitwear exports grew to $2.4 billion, up 8% YoY in FY2023
Verified13Carpet and rugs exports were $350 million in 2023
Verified14Jute products manufacturing output 100,000 tons annually
Directional15Silk production limited to 1,000 tons but imports processed 5,000 tons
Single source16Textile machinery imports worth $500 million in FY2023 for modernization
Verified17Apparel sector has 5,000 stitching units employing 2 million workers
Verified18Grey fabric production 800 million meters per month capacity
Verified19Dyed/printed fabric exports $1.5 billion in FY2023
Directional20Hosiery exports reached $800 million, growing 12% in 2023
Single source21Canvas and tarpaulin production 50 million sq meters annually
Verified22Woolen textiles output declined 5% due to raw material shortage in 2023
Verified23Tent and canvas exports $100 million from Faisalabad cluster
Verified24Embroidered garments exports up 15% to $300 million in FY2023
Directional25Textile waste recycling processes 200,000 tons per year
Single source26Pakistan has 1,200 shuttleless looms operational in 2023
Verified27Garment cities host 500 units producing for EU/US markets
VerifiedTextiles 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.
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