By Moaaz Manzoor

Pakistan’s large-scale manufacturing (LSM) sector grew 5.89% during July–February FY2025-26, while output in February 2026 increased 6.45% year-on-year, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

The provisional Quantum Index of Manufacturing (QIM) for July–February FY2025-26 was recorded at 122.77, compared to 115.94 in the same period of last year. For February 2026, the index stood at 131.50, against 123.53 in February 2025 and 144.46 in January 2026.

On a monthly basis, manufacturing output declined 8.97% compared to January 2026, indicating a slowdown after a stronger start to the year, although the yearly trend remained positive.

Among major sectors, automobiles remained the strongest contributor, posting 28.74% growth in February 2026 and 61.66% during July–February FY2025-26. Sugar output also recorded significant gains, rising 29.34% in February and 13.62% in the cumulative period.

Other key sectors also showed positive momentum. Petroleum products increased 14.03% in February and 11.98% during July–February, while cement rose 8.27% in the month and 11.11% in the cumulative period. Garments posted 0.85% growth in February and 7.16% during the eight-month period.

The textile-related segments showed modest growth, with cotton yarn increasing 1.40% in February and 2.23% cumulatively, while cotton cloth rose 0.14% in the month and 0.20% during July–February FY2025-26.

Broader manufacturing support came from sectors including food, beverages, tobacco, textiles, coke and petroleum products, rubber products, non-metallic mineral products, fabricated metals, electrical equipment, automobiles, and other transport equipment. Food recorded 13.94% growth in February and 5.26% in the cumulative period, while beverages and tobacco grew 6.16% and 8.77%, respectively.

On the other hand, several sectors remained under pressure. Iron and steel products declined 9.94% in February and 5.70% during July–February, while pharmaceuticals fell 5.79% in the month and 4.94% cumulatively. Leather products contracted 6.35% in February and 1.90% in the eight-month period, while machinery and equipment declined 0.18% in February and 16.51% cumulatively.

Overall, the data shows that while the manufacturing sector maintained positive growth during the current fiscal year, the sharp month-on-month decline in February suggests some easing in output momentum.

Credit: INP-WealthPk