The manufacturing sector encourages domestic output, exports, and employment, thus stimulating economic expansion. The manufacturing sector of Pakistan has contributed 12.79 percent to the GDP and employed 16.1 percent of the labor force in recent years. Large-scale manufacturing, at 9.73 percent of GDP and 76.1 percent of the sectoral share, dominates the manufacturing sector. It is followed by small-scale manufacturing, at 2.12 percent of GDP and 16.6 percent of the sectoral share. The third component, slaughtering, contributes 0.94 percent to the GDP and 7.4 percent to the sector share.
COVID-19 has emerged as one of the greatest threats to the world and domestic economy, halting economic activity. Due to two factors, the situation was particularly difficult for Pakistan's industrial sector. First, many manufacturing jobs are on-site and cannot be performed remotely. Second is the deceleration of industrial operations due to strong trade and production relations with the hardest-hit nations (Pakistan Economic Survey 2020-21). The CEPD insinuates the industry to address major issues, including red tape, the provision of credit services, tax benefits, lack of government support, inefficient and inadequate material testing laboratories, a dearth of research and development, and a lack of skilled workers.