Pakistan’s Large Scale Manufacturing (LSM) sector recorded growth of 1.85 percent during July-August 2026-27, indicating a slowdown in industrial expansion, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
The Quantum Index of Manufacturing (QIM) reached 116.14 points during the two-month period, up from 114.03 points in the corresponding period last year. However, industrial output declined 4.96 percent in August compared with July, reflecting a monthly contraction despite modest year-on-year improvement.
Automobiles, garments and petroleum support manufacturing, while fertilizer and steel remain under pressure.
Automobiles remained a major contributor to industrial performance, registering growth of 32.45 percent during July-August. Garments, cement and petroleum products also supported manufacturing activity, while cotton yarn recorded gains.
However, several key industries continued to face difficulties. Fertilizer production declined by 7.55 percent during the period, while iron and steel output fell 11.48 percent. Cotton cloth recorded a marginal contraction of 0.03 percent.
The August figures showed stronger year-on-year performance in several industries, including wood products, which surged 253.26 percent, other transport equipment, which grew 37.04 percent, and furniture, which increased 31.08 percent. Automobile output also maintained strong momentum.
Conversely, food, textiles, chemicals and pharmaceutical products registered negative growth during the two-month period.
The latest figures present a mixed picture of Pakistan’s industrial recovery, with gains concentrated in selected manufacturing segments while weakness in fertilizer and steel highlights persistent challenges across the industrial base.
