Private investment in Pakistan’s manufacturing sector has plunged to nearly half its previous levels over the past six years, raising alarms about the country’s industrial strength and economic outlook. The decline is attributed to rising production costs, energy shortages, policy inconsistency, and high interest rates, all of which have eroded business confidence. Economists warn that this slowdown threatens exports, job creation, and industrial competitiveness, particularly in key sectors such as textiles, machinery, pharmaceuticals, and engineering goods. Experts emphasize the need for policy stability, cheaper energy, and easier access to finance to restore investor trust. Without urgent reforms, Pakistan risks further industrial stagnation and economic vulnerability in the years ahead.
