Pakistan’s manufacturing sector grows 6.6% as large-scale industry rebounds in FY26

Pakistan’s manufacturing sector grew by 6.6% in FY2025-26, up from 2% a year earlier, driven by a 6.5% rebound in Large-Scale Manufacturing (LSM) during July-March FY26 compared with a 1.9% contraction last year, alongside 8.5% growth in Small-Scale Manufacturing (SSM) and a 6.2% increase in slaughtering activities, according to the Economic Survey 2025-26.

Manufacturing and mining together contributed 13.5% to Pakistan’s gross domestic product. Within the manufacturing sector, LSM accounted for 67.4% of total manufacturing output and 8.2% of GDP.

Industrial activity gained momentum throughout the year, with LSM posting 11.1% growth in March 2026 compared with a 2.4% contraction in March last year. The survey attributed the recovery to improving industrial activity after disruptions caused by import restrictions in previous years.

The automobile sector recorded broad-based growth, with passenger car production rising 51.3% and sales increasing 45.5% during July-March FY26. Production of trucks surged 87.8% to 5,301 units from 2,822 units a year earlier, while bus production increased 28.9% to 704 units.

Electric vehicle production also rose, with 240 electric cars produced and 263 sold during the period, compared with 150 units produced and 132 sold in the corresponding period last year.

The survey noted that the farm tractor segment was the only major automotive category to record a decline, with production falling 8% and sales dropping 13%.

Meanwhile, the mining and quarrying sector grew by 0.4%, indicating a gradual recovery in extraction activities.

Pakistan’s textile and apparel sector, which contributed 59.7% of exports and 24.2% of industrial value addition during July-March FY26, recorded exports of $13.58 billion. However, textile exports were down 0.5% compared with the same period last year.