ISLAMABAD: The Large-Scale Manu­facturing (LSM) sector grew 2.69 per cent year-on-year in September, indicating a possible recovery in the country’s industrial production.

The slight rebound from the previous month’s sluggish growth offers a glimmer of hope amid ongoing economic challenges, according to figures released by the Pakistan Bure­­au of Statistics (PBS) on Wednesday.

On a month-on-month basis, the LSM recorded a growth of 2.05pc in September, indicating a modest recovery. The improvement suggests that the adverse impact of recent flooding on industrial activity has largely subsided, allowing for a gradual stabilisation in production across key sectors.

In July, the first month of FY26, a robust growth of 8.99pc was recorded, which decreased to a mere 0.54pc in August due to floods.

The LSM posted a 4.08pc year-on-year increase during the July-September quarter, mainly due to strong performance in the automobile and cement sectors.

In FY25, the LSM recorded a negative growth of 0.74pc compared to the preceding year. LSM, which contributes nearly 8pc to GDP, contracted falling far short of the growth target of 3.5pc for FY25.

In FY24, the LSM sector contracted by 0.03pc, compared with 0.92pc growth in the preceding year.

The food group production rose 6.94pc in July-September FY26. Wheat and rice milling rose by 9.30pc, and starch and its products by 0.64pc, respectively. Wheat and rice milling increased substantially during the period under review, primarily due to improved crop yields.

However, cooking oil production increased by 8.54pc, while vege-table ghee production fell by 0.06pc. However, tea blended declined by 5.35pc.

The overall textile sector posted a paltry growth of 1.88pc in 1QFY26. Cotton yarn increased by 2.62pc and cotton cloth by 0.28pc, accounting for more than 80pc of the textile sector. The primary cause of flat production was a slight decline in export unit value in the face of higher lower demand for textiles.

Garment exports grew by 2.43pc in 1QFY26. However, the garment sector recorded negative year-on-year growth of 2.18pc in September. This will be a serious issue for the value-added sector, which has posted negative growth for the past two consecutive months.

Coke and petroleum products dipped 3.35pc in 1QFY26. Petrol production declined by 3.52pc, jet fuel oil by 5.23pc, and furnace oil by 21.62pc, respectively.

However, production of high-speed diesel rose by 10.83pc, followed by kerosene by 11.17pc, LPG by 8.20pc and lubricating oil by 46.50pc.

The automobile sector grew 84.58pc in 1QFY26. This growth was mainly contributed 86.19pc increase in jeeps and cars production, followed by LCVs 6.36pc, trucks 139pc, and buses 21.43pc. The production of diesel engines up by 3.23pc in 1QFY26.

The production of pharmaceutical products dipped 4.81pc. However, fertilisers posted a paltry 0.97pc growth.

Iron and steel production declined 3.52pc in 1QFY26. Billets/ingots, mostly used in the construction industry, dec­lined 10.20pc. Similarly, H/CR sheets/strips/coils/plates dipped by 0.75pc.

The production of rubber products surged by 14.10pc, non-metal-lic minerals by 13.86pc and electrical equip-ment 4pc.

Published in Dawn, November 20th, 2025