National Industrial Policy 2025-30

Pakistan's economy today sits at a critical crossroads. Pakistan's industrial base, the lifeblood of sustainable economic growth, appears to be losing its strength, with large-scale manufacturing continuing to show worrying signs of stagnation. Despite glimpses of macroeconomic stability and improving geopolitical relations, the core of Pakistan's economy remains fragile, weighed down by policy inconsistencies, rising energy costs, and declining productivity across key industrial sectors.

Pakistan's industrial wheel, particularly its large-scale manufacturing, has slowed to one of its weakest phases in recent years. The sector, which accounts for around 8% of GDP in FY25 and employs millions directly and indirectly, has been contracting intermittently for over two years. According to data from the Pakistan Bureau of Statistics (PBS), LSM output in the last fiscal year fell by 0.74% after a brief rebound earlier, continuing a downward trend that began in the aftermath of global supply shocks and domestic energy crises.