Pakistan’s Large Scale Manufacturing (LSM) Index posted a 0.4 percent year-on-year (YoY) increase in December 2025, alongside a strong 9.3 percent month-on-month (MoM) rise, signaling a rebound in industrial output.
In the first half of FY26 (1HFY26), the LSM index expanded by 5 percent YoY, reflecting improving momentum across the manufacturing sector.
The December uptick was largely supported by a 31 percent YoY surge in automobile production. Other contributing sectors included wearing apparel, which grew by 9 percent, cement and non-metallic minerals, both up 3 percent, and textiles, which rose by 2 percent.
Despite the overall improvement, some industries continued to face pressure. Fertilizer production declined by 10 percent YoY, while pharmaceuticals and food manufacturing each fell by 6 percent. Petroleum and coke output also dropped by 5 percent during the month.
In its GDP outlook released on December 31, 2025, Topline Securities revised its FY26 LSM growth forecast upward to 4.0 percent from an earlier projection of 2.5 percent, citing stronger-than-expected industrial performance.
