Pakistan registered industrial growth in 2025 despite challenges

The year 2025 witnessed fluctuations in electricity and gas prices, high interest rates, inflationary pressures, extortion demands, and multiple strikes, yet large industries achieved notable growth. However, exports did not see significant improvement.

Here is a look at how the industrial sector performed over the year.

For the industrial sector, 2025 proved to be a mixed year. Despite volatility in electricity and gas prices, high interest rates, and periods of inflation reduction, major industries recorded considerable progress.

Sectors including petroleum, textiles, automobiles, and cement expanded their production capacities, though exports remained largely stagnant.

Small-scale industries, on the other hand, faced persistent challenges. Industrialists pointed to unreliable gas, electricity, water, and poor infrastructure as major obstacles to smooth production.

Additionally, strikes and high interest rates disrupted operations, occasionally forcing hundreds of units to halt production.

Experts noted that the import of luxury goods also affected local industries. Nevertheless, remittances played a positive role in supporting national economic growth. Limited tax coverage and high production costs, however, curtailed potential gains in exports.

Industrialists are urging the government to take measures to reduce production costs, which could not only boost exports but also help tackle unemployment and poverty in the country.

They emphasised that if basic facilities improve and costs are lowered, local industries would strengthen, enabling sustained economic growth.

In summary, 2025 saw the industrial engine keep running: large businesses progressed along the path of growth, while exports and small enterprises continued to face multiple challenges.