Large-scale manufacturing shrank by almost 5.5% in November compared to the same month in 2021, showing a downward trend as economic woes and extreme austerity measures approached their peak. In fact, some analysts believe that things could get worse because production will naturally decline if gas supplies for enterprises are suspended in favour of residential consumers during the chilly winter months.
As per the official PBS data through November, industrial sectors continue to be under pressure on a national and international level.
While vital imports like energy, food, and various types of raw materials continue to linger around record highs, the contractions are also harming export-oriented companies, which means that the currency problem will only get worse. Unfortunately for the millions of people who are suffering, there are still no effective answers in sight. Each political figure seems to have its own top-secret scheme until it’s time to put it into action.
It is quite likely that domestic manufacturers will not be able to meet the supply needs of the garment sector, as a few sub-sectors that saw development, such as clothing, were significantly dependent on locally produced raw materials like cloth and yarn, which experienced massive contractions. Steel and several other raw material productions experienced similar decreases, and pharma output also experienced a decline. Beyond the effects on exports, this may have a direct impact on healthcare costs. But even expensive healthcare will be overshadowed by a new wave of food inflation brought on by falling production of wheat, rice, and cooking oil, which will be made worse by delays at Karachi’s ports.
