Pakistan’s Large-Scale Manufacturing (LSM) sector expanded by 5.77 percent during the first 11 months of FY2025-26, supported by strong growth in the automobile, food, garment, and petroleum industries, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
The Quantum Index of Manufacturing increased to 121.65 during the July–May period, compared to 115.02 recorded in the corresponding period of the previous fiscal year.
However, industrial output declined 0.98 percent year-on-year in May, although it registered a 1.21 percent month-on-month increase compared to April.
Automobile Sector Leads Growth
The automobile industry remained the strongest performer, with overall production increasing 58.82 percent during the first 11 months of the fiscal year.
Key highlights include:
- Cars and jeeps: up 60.60%
- Trucks: up 76.88%
- Buses: up 23.66%
Food, Petroleum and Garments Show Strong Performance
Several other industries also contributed positively to manufacturing growth.
The food sector expanded by 7.75 percent, driven largely by a 31.54 percent increase in the production of sugar, bakery products, and chocolates.
The petroleum products sector recorded 10.56 percent growth, with production increasing across major fuel categories:
- Petrol: up 13.04%
- High-Speed Diesel (HSD): up 17.01%
- LPG: up 14.56%
Meanwhile, the garment industry also posted positive growth, while garment exports increased 7.31 percent during the same period.
Some Industries Continue to Struggle
Despite the overall improvement in manufacturing activity, several key industries remained under pressure.
- Pharmaceuticals: down 8.07%
- Iron and steel: down 7.49%
- Chemicals: down 2.64%
- Fertilizer: down 2.25%
Pakistan’s largest manufacturing segment, the textile sector, remained largely unchanged, recording a slight decline of 0.09 percent during the July–May period.
The latest figures indicate that while manufacturing activity has continued to recover during FY2025-26, growth remains uneven across industries, with automobiles and consumer-focused sectors driving the overall expansion.
