ISLAMABAD: The Large-Scale Manufacturing (LSM) sector staged a recovery, posting a robust year-on-year growth of 8.99 per cent in the first month of FY26, according to figures released by the Pakistan Bureau of Statistics on Tuesday.

On a month-on-month basis, the LSM posted a positive growth of 2.60pc in July 2025. This clearly indicates a revival in the industrial output at the start of new fiscal year.

The food group surged by 6.63pc in July FY26 on a YoY basis. Wheat and rice milling experienced a rise of 10.07pc, starch and its products 0.95pc, respectively. Wheat and rice milling increased substantially during the period under review, owing primarily to improved crop harvests.

However, vegetable ghee production increased 6.69pc, cooking oil 0.76pc. However, tea blended declined by 3.95pc.

The textile sector grew 0.04pc in July FY26 on a YoY basis. Cotton yarn has increased by 1.70pc, while cotton cloth has increased by 0.40pc, accounting for more than 80pc of the textile sector. The primary cause of the slowdown in production was a slight decline in export unit value in the face of higher lower demand for textiles.

The exports of garments recorded a growth of 24.79pc on a YoY basis. The surge in garment exports is primarily due to diverting foreign purchasers from Bangladesh to Pakistan.

Coke and petroleum products grew 13.18pc in July FY26. The petrol production increased by 6.16pc, the production of high-speed diesel rose by 27.93pc, and kerosene by 44.66pc. The LPG production up 6.97pc and solvent naptha 6.97pc.

The automobile sector grew 57.80pc in July FY26 on a YoY basis. This growth was mainly contributed by a growth of 60.26pc in jeeps and cars, followed by LCVs 3.27pc, trucks 70.36pc, and buses 15.63pc. However, the production of diesel engines up by 3.97pc during the month under review.

The production of pharmaceutical products grew 1.09pc. However, the production of fertilisers dipped by 1.60pc, respectively.

Published in Dawn, September 17th, 2025