By Moaaz Manzoor

Pakistan’s large-scale manufacturing expanded 5.77% during July–May FY2025-26, with automobiles, food and garments providing the strongest support to industrial growth.

According to the Pakistan Bureau of Statistics, the Quantum Index of Large-Scale Manufacturing Industries rose to 121.65 during the first 11 months of FY2025-26 from 115.02 in the corresponding period of the previous year. The index uses 2015-16 as its base year.

Automobile production recorded the largest increase among the major sectors, rising 58.82% during July–May. Its contribution of 1.53 percentage points was also the highest positive impact on the overall 5.77% expansion.

Food production grew 7.75% and contributed 1.36 percentage points, while wearing apparel increased 7.31%, adding another 1.20 percentage points to overall growth.

Coke and petroleum-product output rose 10.56% and contributed 0.78 percentage points.

The broader expansion was supported by several other manufacturing categories. Other transport equipment grew 41.63%, furniture production increased 26.96%, and electrical equipment output rose 13.50%.

Rubber products expanded 14.20%, tobacco production increased 12.79%, fabricated-metal products grew 9.70%, and non-metallic mineral products rose 6.31%.

Among selected industrial products, sugar output increased 31.54% during the 11-month period, while cement production grew 7.16%. Cotton-yarn and cotton-cloth output recorded comparatively modest increases of 1.26% and 0.17%, respectively.

However, weakness in pharmaceuticals, iron and steel, chemicals and textiles limited the overall pace of growth, with pharmaceutical production declining 8.07% during July–May and reducing overall LSM growth by 0.49 percentage points, the largest negative contribution among the sectors.

Similarly, output of iron and steel products fell 7.49%, subtracting 0.32 percentage points, while chemical production decreased 2.64%, reducing growth by 0.21 percentage points.

Leather-product and fertiliser production each declined 2.25%, while wood-product output fell 0.57%.

The textile sector remained nearly unchanged but slipped 0.09% during the period, reducing overall growth by 0.02 percentage points. This marginal decline came despite small increases in cotton-yarn and cotton-cloth production.

While the cumulative figures remained positive, the latest monthly data showed weaker activity compared with the same month last year.

The LSM index stood at 116.10 in May 2026, down 0.98% from 117.25 in May 2025. Compared with April 2026, however, industrial output increased 1.21% from an index level of 114.71.

Within the May figures, sugar production rose 23.25% year-on-year, automobiles increased 20.81%, petroleum products grew 15.75%, electrical equipment rose 13.88% and wearing apparel expanded 7.05%.

These increases were insufficient to offset declines in several major industries. Pharmaceutical output fell 23.34%, iron and steel products declined 12.57%, cement decreased 9.36% and food production fell 7.43%.

Textile production declined 4.35% in May, while chemicals and fertilizers fell 5.95% and 4.77%, respectively.

The data indicate that strong automobile, food, apparel and petroleum-sector performance sustained cumulative manufacturing growth during July–May, even though weakness in several large industries pulled overall output lower on a year-on-year basis in May.

Credit: INP-WealthPk