Pakistan’s Large-Scale Manufacturing (LSM) sector continues to demonstrate a strong upward trajectory, reflecting improving industrial activity and growing domestic demand during the ongoing fiscal year. During the July to October period of FY2026, LSM registered growth of 5.02 percent, with 16 industrial sectors posting positive performance. Key contributors to this expansion included textiles, wearing apparel, non-metallic mineral products, food, coke and petroleum products, electrical equipment, automobiles, and tobacco.
The momentum strengthened further in October 2025, when LSM recorded an 8.3 percent increase on a year-on-year basis, alongside a 3.7 percent rise on a month-on-month basis. This acceleration highlights sustained recovery in industrial production, supported by improving supply chains, easing financial conditions, and rising consumer demand across multiple sectors.
The automobile sector emerged as a major driver of manufacturing growth during the July to November period of FY2026. Production of cars surged by 65.1 percent, while output of trucks and buses increased sharply by 97.0 percent. Production of jeeps and pick-ups also rose by 38.8 percent, reflecting strong demand from both commercial and private segments. The robust performance of the automobile industry signals improved confidence among consumers and businesses, as well as enhanced availability of financing and inputs.
The cement sector also maintained solid growth, benefiting from increased construction activity and infrastructure development. Cumulative cement dispatches reached 21.4 million tonnes during Jul-Nov FY2026, marking an increase of 11.5 percent compared to the same period last year. Domestic cement dispatches totaled 17.4 million tonnes, recording a notable 14.7 percent year-on-year rise, indicating strong demand from the local market. In contrast, cement exports remained nearly flat at 4.01 million tonnes, suggesting that growth during the period was primarily driven by domestic consumption.
Other manufacturing segments, including textiles and wearing apparel, continued to support overall industrial growth, benefiting from stable input availability and gradual improvement in market conditions. Growth in non-metallic mineral products, food processing, and petroleum-related industries further contributed to the positive trend in LSM output.
Overall, the sustained expansion in Large-Scale Manufacturing points to strengthening industrial fundamentals and improving economic activity. The broad-based nature of growth across multiple sectors indicates resilience in Pakistan’s manufacturing base, which is expected to play a critical role in supporting economic recovery, employment generation, and overall GDP growth during FY2026.
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