ISLAMABAD: Pakistan’s Large Scale Manufacturing (LSM) sector recorded a robust growth of 10.37 percent in November 2025, primarily fueled by strong performances in the automobile, petroleum, garments, and cement sectors, according to data released by the Pakistan Bureau of Statistics (PBS).
Overall, the LSM sector showed a cumulative growth of 6.01 percent during July–November 2025-26 compared to the corresponding period last year. On a month-on-month basis, the sector posted a marginal increase of 0.16 percent.
The growth was driven by key contributors based on their weightage in the Quantum Index Numbers of LSM Industries. Among them, automobiles led the surge with a 75 percent increase, petroleum products rose 18.06 percent, cement production expanded 13.47 percent, and garments grew by 7.14 percent. Other sectors registering growth included food, beverages, tobacco, paper and board, rubber products, non-metallic mineral products, fabricated metal, computer, electronics and optical products, and electrical equipment.
However, certain industries recorded declines, including leather products, wood products, chemical products, pharmaceuticals, iron and steel products, machinery and equipment, and furniture. Experts suggest that the growth in domestic production was partially triggered by a decline in imports, although the continuous fall in exports raises concerns about the sustainability of LSM growth.
Export performance remained weak, with proceeds declining by 8.70 percent during the first half of FY26 (July–December), amounting to USD 15.184 billion compared to USD 16.63 billion in the same period last year. The discrepancy between strong domestic production and falling exports highlights structural challenges in translating manufacturing growth into external market competitiveness.
The PBS report also detailed the sectoral contributions to overall LSM growth. Food contributed 0.47 percent, tobacco 0.06 percent, textile 0.32 percent, garments 1.24 percent, paper and board 0.07 percent, petroleum products 1.29 percent, cement 0.78 percent, automobiles 1.77 percent, and other transport equipment 0.24 percent. Meanwhile, chemicals, pharmaceuticals, iron and steel products, machinery, and furniture registered negative contributions, reflecting uneven sectoral performance.
Analysts note that while LSM growth offers a positive sign for domestic industrial activity, sustained economic recovery requires improved export performance, targeted policies to enhance competitiveness, and measures to balance import substitution with global market access.
The November LSM figures underscore a critical juncture for Pakistan’s manufacturing sector, emphasizing the need for policy interventions that can harness domestic growth into broader economic and export-led gains.
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