Key Takeaways
- The Large Scale Manufacturing (LSM) sector grew by 5.77% year-on-year during July-May 2025-26.
- Automobiles led the growth with a remarkable increase of 58.82% cumulatively.
- Food and garments sectors contributed significantly to overall growth.
The Large Scale Manufacturing (LSM) sector in Pakistan has recorded a robust year-on-year growth of 5.77% during the July-May period of fiscal year 2025-26, according to provisional data released by the Pakistan Bureau of Statistics (PBS).
This growth is primarily driven by strong performances across various sectors, with automobiles emerging as the key driver. The automobile sector registered a remarkable increase of 20.81% in May and a cumulative expansion of 58.82% during July-May FY26.
Other significant contributors to the overall growth include the sugar sector, which posted a monthly growth of 23.25% and a cumulative growth of 31.54%, as well as the garments sector, which showed a 7.05% monthly increase and a 7.31% cumulative expansion.
The food sector also contributed positively with a 7.43% monthly growth and a 1.36% cumulative expansion during May. However, some sectors experienced declines, such as cement, which saw a decrease of 9.36% on a monthly basis and 7.16% cumulatively, while the iron/steel sector faced a decline of 12.57% on a monthly basis and 7.49% annually.
The Quantum Index of Manufacturing (QIM) for May was recorded at 116.10 points, reflecting an increase of 1.21% from the previous month but showing a reduction of 0.98% year-on-year compared to May 2025 when it stood at 117.25 points.
The data also highlighted that on a monthly basis, food sector growth was 7.43%, with a cumulative expansion of 1.36%. The tobacco sector showed strong performance with a 13.26% monthly increase and a 0.20% cumulative growth. Rubber products experienced a 6.58% monthly growth, while the textile sector saw a modest 4.35% monthly increase.
Despite these positive trends, certain sectors like fertilizers and pharmaceuticals showed declines. The fertilizer sector registered a decrease of 4.77% on a monthly basis and 2.25% cumulatively in May 2026, while the pharmaceuticals sector declined by 0.49% both monthly and cumulatively.
Overall, the LSM growth is attributed to sectors such as food (1.36%), beverages (0.24%), tobacco (0.20%), garments (1.20%), petroleum products (0.78%), cement (0.40%), electrical equipment (0.35%), and automobiles (1.53%).
The robust performance of the LSM sector is seen as a positive indicator for Pakistan's economic health, particularly in export-oriented industries like textiles and garments.
