Pakistan’s Large-Scale Manufacturing (LSM) sector has returned to an expansionary trajectory in the first half of FY2026, registering a growth of 4.8 percent during July to December compared to a contraction of 1.8 percent recorded in the same period last year. The rebound reflects broad-based industrial recovery, with automobiles, wearing apparel, and coke and petroleum products emerging as the principal drivers of performance.
According to the latest data, the automobile sector contributed 1.6 percent to overall LSM growth during Jul-Dec FY2026. Wearing apparel followed with a contribution of 1.3 percent, while coke and petroleum products added 1.0 percent. Together, these segments formed the backbone of industrial expansion, offsetting weaknesses observed in previous fiscal cycles and signaling renewed production momentum across key value chains.
Out of the total industrial segments tracked, 14 sectors recorded positive growth during the period under review. These included textile, wearing apparel, non-metallic mineral products, food, beverages, coke and petroleum products, electrical equipment, automobiles, and tobacco. The diversified nature of the gains suggests strengthening demand conditions and improved operational continuity within manufacturing units.
On a shorter-term basis, December 2025 figures indicate continued stability in industrial activity. LSM posted a 0.4 percent increase on a year-on-year basis, reflecting sustained improvement compared to the previous year. More notably, month-on-month growth stood at 9.3 percent in December, highlighting a sharp acceleration in output toward the end of the calendar year. The monthly uptick underscores stronger production cycles and possibly improved supply chain flows across industrial clusters.
The automobile sector has remained a standout performer throughout Jul-Jan FY2026, delivering robust output gains across multiple categories. Production of trucks and buses surged by 92.9 percent, marking one of the strongest growth rates among manufacturing subsectors. Passenger car production increased by 57.5 percent, while two- and three-wheelers recorded a rise of 32.6 percent. Jeeps and pick-ups also registered a solid expansion of 26.5 percent. The across-the-board increase in vehicle production points to stronger market activity, fleet renewal demand, and improved manufacturing capacity utilization.
Parallel to the automotive expansion, the cement industry has demonstrated sustained momentum. Cumulative cement dispatches during Jul-Jan FY2026 grew by 10.6 percent, reaching 30.6 million tonnes. Domestic dispatches accounted for 25.0 million tonnes, reflecting a 12.5 percent increase compared to the same period last year. The rise in local consumption indicates continued construction activity and infrastructure development across the country.
Exports of cement witnessed a significant surge of 61.1 percent during the same period, with volumes reaching 0.9 million tonnes. The sharp jump in export performance signals improved external demand conditions and enhanced competitiveness of domestic producers in regional markets.
Overall, the 4.8 percent expansion in Large-Scale Manufacturing during the first half of FY2026 marks a notable turnaround from last year’s contraction. With automobiles, apparel, petroleum products, and cement providing sustained support, the industrial sector appears to be stabilizing and regaining growth momentum, setting the stage for a stronger performance in the remaining months of the fiscal year.
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