Pakistan’s Large Scale Manufacturing (LSM) sector posted a solid recovery during the current fiscal year, registering a cumulative growth of 5.75 percent in July–January FY26, driven by strong performances in key industries and a sharp surge in output during January.
Latest provisional data released by the Pakistan Bureau of Statistics shows that the Quantum Index of Manufacturing (QIM) rose to 144 points in January 2026, reflecting a robust increase of 10.54 percent year-on-year and 12.08 percent month-on-month. On a cumulative basis, the QIM averaged 121.46 during the seven-month period, compared to 114.85 in the same period last year.
The growth momentum was led primarily by the automobile sector, which recorded a remarkable 67.31 percent increase in January and a cumulative expansion of 67.38 percent, emerging as the largest contributor to overall LSM growth. The garments sector also maintained strong performance, posting 10.82 percent monthly growth and 8.02 percent cumulative gains, supported by export demand.
Other major contributors included petroleum products, cement, and food. Cement output rose 10.83 percent in January, while food production rebounded with 12.07 percent growth, indicating improved industrial activity and consumption trends. Electrical equipment and beverages also showed steady expansion.
However, some sectors remained under pressure. Iron and steel, machinery, pharmaceuticals, and fertilizers continued to record declines, weighing on broader industrial performance.
Despite these challenges, the LSM sector’s broad-based recovery signals improving economic activity, although sustaining this momentum will depend on consistent policy support and demand stability.
