Big industries\' growth in the red

The growth in Pakistan's major industries – the largest contributors to taxes and employment – shrank nearly 2% during the first half of the current fiscal year, indicating the adverse impact of high cost of doing business and economic stabilisation. The large-scale manufacturing (LSM) sector registered a negative growth of 1.9% during the July-December period of fiscal year 2024-25 compared with the same period of last year, Pakistan Bureau of Statistics (PBS) reported on Thursday. It is the third consecutive year when big industries are facing a contraction due to the policies implemented by the government to avoid sovereign default. Interest rate has been reduced by 10 percentage points but it will take time before businesses start borrowing. The prevailing political, security and economic instability are also impacting the investment climate.