Saigol says without private sector engagement manufacturing base may face stagnation
Islamabad
The Pakistan Industrial and Traders Associations Front (PIAF) has expressed serious concern over the continued contraction in the country’s large-scale manufacturing (LSM) sector, urging the government to implement a comprehensive National Industrial Growth Strategy to revive industrial activity and strengthen economic recovery.
PIAF leaders emphasized that without coordinated policy action and private sector engagement, Pakistan’s manufacturing base could face prolonged stagnation, jeopardizing employment and export potential.
PIAF chairman Faheemur Rehman Saigol highlighted that the LSM sector’s performance remains weak, pointing to recent data showing a decline in key industrial segments despite modest gains in some consumer-driven industries.
“Our industrial sector is at a critical juncture. While some sectors like automobiles and garments have managed to show resilience, heavy manufacturing, machinery, and construction-linked industries are under severe pressure,” Saigol said.
He stressed that targeted measures and sustained policy support are essential to reverse the negative trends and ensure long-term industrial growth.
Senior Vice Chairman Tahir Mazoor Chaudhry warned that the high cost of production and rising input expenses are limiting the private sector’s ability to drive economic expansion. “Even with the government’s planned reforms, the burden of energy shortages, financing challenges, and weak investor confidence is weighing heavily on industrial activity.
Without urgent intervention, these structural weaknesses will continue to suppress growth,” he noted. Chaudhry called for practical incentives, particularly in energy and export sectors, to encourage private investment and stimulate industrial output.
Vice Chairman Nasrullah Mughl pointed to the mixed performance across Pakistan’s manufacturing landscape, emphasizing the uneven recovery and structural vulnerabilities.
“Automobiles, apparel, and pharmaceuticals are performing well, reflecting demand-driven growth. However, machinery, minerals, cement, and furniture industries are contracting sharply, highlighting systemic constraints that need policy attention,” Mughl said. He added that the LSM sector’s weak performance could undermine broader economic recovery unless the government acts decisively with a national strategy that prioritizes industrial sustainability.
Faheemur Rehman Saigol underscored that the decline in LSM is not a recent phenomenon. The sector had been struggling even before global shocks such as the COVID-19 pandemic, which further disrupted supply chains and domestic demand. “The pandemic intensified the challenges but did not create them. The underlying issues of high production costs, inconsistent energy supply, and structural inefficiencies have been persistent,” Saigol remarked.
Highlighting recent statistics, PIAF noted that several industrial segments experienced significant contraction over the past fiscal year. Cement, iron and steel products, and non-metallic minerals recorded steep declines, while machinery output fell sharply. Despite some growth in automobiles, garments, and petroleum products, overall industrial momentum remained subdued, raising concerns about employment generation and export competitiveness.
PIAF reiterated that a well-coordinated National Industrial Growth Strategy with full government ownership is critical to restoring confidence and providing a clear roadmap for industrial expansion. “Private sector-led revival can only succeed if complemented by supportive policy measures, energy reforms, and financial incentives. It is time for decisive action at the highest level to stabilize and grow our manufacturing base,” Saigol concluded.
The front’s leadership called for immediate consultations between the government and industry stakeholders to identify bottlenecks, align regulatory frameworks, and create conditions conducive to sustainable industrial growth. They emphasized that achieving broad-based industrial recovery would boost exports, generate jobs, and strengthen the country’s economic resilience in the face of domestic and global challenges.
