Pakistan’s large-scale manufacturing (LSM) sector recorded a year-on-year growth of 10.37% in November, even as exports continued to decline, driven mainly by higher output in automobiles, petroleum products, garments and cement.
Data released by the Pakistan Bureau of Statistics showed that the LSM sector expanded by 6.01% during July–November FY26 compared with the same period last year. On a month-on-month basis, output edged up by 0.16%.
The strongest contributions to overall growth came from automobiles, petroleum products, garments and cement, while moderate support was also recorded from food, tobacco, textiles, paper and board, electrical equipment and other transport equipment.Â
However, output declined in chemicals, pharmaceuticals, iron and steel products, machinery and equipment, furniture, and leather-related segments.
During the first five months of FY26, automobile production surged 75% year-on-year, while output of coke and petroleum products rose 18.06%. Cement production increased by 13.47% and garments by 7.14%. Gains were also reported in food, beverages, tobacco, rubber products, non-metallic mineral products, fabricated metal items, electronics and electrical equipment.
In contrast, production fell in leather products, wood products, chemicals, pharmaceuticals, iron and steel, machinery and equipment, and furniture.
Analysts said the increase in domestic production may be linked to lower imports, but questioned the sustainability of growth amid weak external demand. Exports have declined for five consecutive months, raising concerns over the divergence between manufacturing output and trade performance.
In the first half of FY26 (July–December), export proceeds fell by 8.7% year-on-year to $15.18 billion, compared with $16.63 billion in the same period last year, adding pressure to Pakistan’s external sector despite the rebound in manufacturing activity.
