ISLAMABAD: The country’s large-scale manufacturing (LSM) sector posted year-on-year growth of 4.98 per cent in the fiscal year 2025-26, pointing to a partial recovery in industrial activity after remaining under pressure in recent years, although a sharp contraction in June showed that the momentum remained uneven.
The Quantum Index of Manufacturing stood at 120.55 during July-June FY26, up from 114.83 in the corresponding period of the preceding fiscal year, the Pakistan Bureau of Statistics said on Tuesday.
The full-year improvement suggests industrial production regained some ground during FY26. However, monthly figures for June showed that the recovery lost momentum towards the close of the fiscal year.
LSM output fell 3.48pc year-on-year in June, reversing the growth trend recorded over the full fiscal year. On a month-on-month basis, production contracted by a sharper 6.08pc compared with May.
June production falls 3.5pc year-on-year, 6pc MoM
The FY26 recovery was led by automobiles, contributing 1.56 percentage points to overall LSM growth, followed by food at 1.21 points, garments 0.91, petroleum products 0.72, cement 0.41, electrical equipment 0.37, furniture 0.28, other transport equipment 0.27, tobacco 0.19, beverages 0.14 and machinery 0.01.
However, the recovery remained uneven, with pharmaceuticals dragging LSM growth by 0.54 percentage points, followed by iron and steel products at 0.34 points, chemicals 0.20 and textiles 0.11.
The weakness in textiles is particularly significant given the sector’s weight in Pakistan’s manufacturing and export base, suggesting that the improvement in headline LSM growth did not extend evenly across some of the country’s major industries.
The June contraction, coupled with negative contributions from textiles, pharmaceuticals, chemicals and iron and steel, indicated that while industrial production recovered during FY26 as a whole, growth remained concentrated in a relatively small group of industries.
The food group grew 7.03pc year-on-year in FY26. Wheat and rice milling increased 0.53pc, while starch and its products rose 0.17pc. Sugar, bakery and chocolate products surged 32.13pc.
However, cooking oil production declined 3.16pc, vegetable ghee fell 5.47pc and blended tea dropped 7.45pc.
The textile sector contracted 0.63pc year-on-year during FY26. Cotton yarn production increased 1pc, while cotton cloth rose 0.17pc.
Published in Dawn, August 19th, 2026
