Pakistan’s large-scale manufacturing (LSM) sector posted an impressive growth rate of 5.02% during the first four months (July–October) of the fiscal year 2025-26, despite a declining trend in exports.
According to data released by the Pakistan Bureau of Statistics (PBS), the LSM sector’s growth in October alone was notable, recording an 8.33% increase year-on-year (YoY) and a 3.75% increase month-on-month (MoM). This growth was driven by major sectors such as food, textiles, garments, petroleum products, and paper & board.
The automobile sector, in particular, played a significant role in this growth, with a remarkable 79% YoY growth in October. Experts attribute this surge to rising demand for domestically produced goods, driven by the high exchange rate, which made imports less affordable for many consumers.
While the manufacturing sector showed robust growth, Pakistan’s exports continued to face challenges, declining by 14.54% to $12.87 billion during the first five months of FY2025-26, compared to $13.72 billion in the same period last year. Experts note that this decline in exports contrasts with the strong performance of the domestic manufacturing sector.
The PBS data also highlighted a mixed performance across various sectors. While there was an increase in the output of food, beverages, tobacco, textiles, and automobiles, production in sectors such as chemicals, pharmaceuticals, iron & steel products, and machinery saw a reduction in output.
