By Moaaz Manzoor

Pakistan’s large-scale manufacturing (LSM) sector showed mixed performance in April 2026, as a sharp rebound in automobile production contrasted with a broader decline in overall industrial activity, according to data released by the State Bank of Pakistan (SBP).

The Quantum Index of Large-Scale Manufacturing (QIM), a volume-based measure of industrial output using 2015-16 as the base year, stood at 114.56 in April 2026, down from 124.96 in March and 131.72 in February. The index reached a recent high of 144.49 in January before losing momentum in the following months.

Despite the overall slowdown, the automobile sector emerged as the standout performer. Its index surged to 160.41 in April from 108.78 in March, reflecting an increase of more than 47% month-on-month and marking the highest reading during the six-month period under review.

The strong rebound in vehicle manufacturing provided a significant boost to industrial activity at a time when several other sectors remained under pressure.

Performance across other industries was mixed. The paper and board sector improved to 144.73 in April from 140.69 in March, while cigarette production rose to 91.61 from 83.11. Jute goods also recorded growth, increasing to 19.68 from 14.24.

Cotton cloth production remained largely unchanged at 84.57 compared with 84.56 in March, indicating stable output levels. Tea blending activity remained broadly steady during the month.

However, a number of key industries recorded weaker performance. Vegetable ghee production declined to 107.23 in April from 112.15 in March. Cement output slipped to 99.77 from 100.93, extending a downward trend from the higher levels recorded earlier in the fiscal year. Fertiliser production also eased to 104.36 from 113.92, while cotton yarn output remained subdued at 79.26.

The latest data highlights the uneven nature of Pakistan’s industrial recovery during FY26. While the automobile sector demonstrated strong resilience and robust growth, weakness in construction-related industries and some consumer goods segments continued to weigh on overall manufacturing performance.

The divergence suggests that industrial growth remains concentrated in selected sectors rather than broadly distributed. Although the sharp rise in automobile production offers an encouraging signal for manufacturing activity, sustained expansion across a wider range of industries will be necessary to strengthen industrial output and support Pakistan’s broader economic growth objectives in the coming months.

Credit: INP-WealthPk