Pakistan manufacturing growth accelerates 5.8% on auto, sugar output surge

LAHORE: Pakistan’s large-scale manufacturing (LSM) sector expanded by 5.77% in the first 11 months of fiscal year 2025-26, buoyed by strong gains in automobiles, sugar, petroleum products, and garments, even as factory output slipped year over year in May, according to provisional data from the Pakistan Bureau of Statistics (PBS).

The Quantum Index of Manufacturing (QIM) rose to 121.65 during July-May, up from 115.02 in the same period a year earlier. In May alone, the index stood at 116.10, down 0.98% from May 2025 but up 1.21% from April 2026.

The figures underscore a broad-based recovery in Pakistan’s industrial sector during FY2025-26, led by consumer-linked industries and energy products. However, persistent weakness in pharmaceuticals, iron and steel, chemicals and fertilizers, alongside stagnant textile output, suggests the recovery remains uneven across manufacturing segments.

Automobiles remained the strongest-performing industry, with production surging 58.82% during July-May and 20.81%in May. Sugar output increased 31.54% over the 11 months and 23.25% in May, while petroleum products grew 10.56% during the period and 15.75% in May.

Garment production rose 7.31% during July-May and 7.05% in May. Cement output advanced 7.16% over the 11 months despite a 9.36% year-on-year decline in May.

Other sectors posting robust gains included electrical equipment, up 13.50%; other transport equipment, up 41.63%; furniture, up 26.96%; and fabricated metal products, up 9.70%.

The recovery was offset by continued contraction in several industries. Iron and steel products declined 7.49% during July-May and 12.57% in May, while pharmaceutical production fell 8.07% over the 11 months and 23.34% in May.

Chemical products contracted 2.64%, while fertilizer and leather production each declined 2.25% during the period.

Textiles, Pakistan’s largest manufacturing industry, remained broadly flat, edging down 0.09% during July-May. Within the sector, cotton yarn production rose 1.26%, and cotton cloth output increased 0.17%.

According to the PBS, the largest positive contributions to LSM growth came from food, garments, automobiles, petroleum products, cement, electrical equipment, beverages, furniture and other transport equipment. The biggest drags were pharmaceuticals, iron and steel products, chemicals, and fertilizers.