Pakistan’s factory activity grows 5.77% in 11MFY26 as automobile output jumps nearly 59%

Pakistan’s Large Scale Manufacturing (LSM) sector expanded 5.77% during the first 11 months of FY2025-26, driven by strong growth in automobiles, sugar, petroleum products and garments, although output declined on a year-on-year basis in May, according to provisional data released by the Pakistan Bureau of Statistics (PBS).

The Quantum Index of Manufacturing (QIM) stood at 121.65 during July-May FY2025-26, compared with 115.02 in the corresponding period last year.

For May 2026 alone, the QIM was recorded at 116.10. Manufacturing output declined 0.98% compared with May 2025 but increased 1.21% from April 2026.

The automobile sector remained the biggest contributor to overall industrial growth, with production rising 58.82% during the 11-month period and 20.81% in May alone.

Sugar production increased 31.54% during July-May and 23.25% in May, while petroleum products recorded growth of 10.56% during the period and 15.75% in May.

Garments production rose 7.31% during the first 11 months of the fiscal year and 7.05% in May, while cement output increased 7.16% during July-May despite falling 9.36% in May.

Electrical equipment production expanded 13.50% during the period, while other transport equipment rose 41.63%. Furniture output increased 26.96% and fabricated metal products 9.70%.

Despite the overall improvement, several industries continued to contract.

Iron and steel products declined 7.49% during July-May and 12.57% in May. Pharmaceutical production fell 8.07% during the 11-month period and 23.34% in May.

Chemical products contracted 2.64%, fertiliser production declined 2.25%, while leather products fell 2.25% during the period.

Textiles, the largest manufacturing segment, remained largely stagnant, posting a marginal decline of 0.09% during July-May, although cotton yarn output increased 1.26% and cotton cloth production edged up 0.17%.

According to the Pakistan Bureau of Statistics, the largest positive contributions to overall LSM growth came from food, garments, automobiles, petroleum products, cement, electrical equipment, beverages, furniture and other transport equipment.

The biggest drags on manufacturing growth were pharmaceuticals, iron and steel products, chemicals and fertilisers.