Pakistan’s Large-Scale Manufacturing (LSM) sector is showing clear signs of renewed momentum as multiple sub-sectors report encouraging levels of expansion in the early months of FY2026. According to official data, LSM grew by 4.1 percent during the July to September period, reflecting broad-based improvement across a wide range of industrial categories. A total of 15 sectors recorded positive growth, providing a much-needed boost to the country’s overall economic trajectory.
The sectors contributing to this upward shift include textile, wearing apparel, non-metallic mineral products, food, coke and petroleum products, electrical equipment, automobile and tobacco. This diverse list demonstrates that the recovery is not isolated to a single area but is instead taking place across a significant portion of Pakistan’s manufacturing base.
In September 2025 alone, LSM registered a 2.7 percent increase on a year-on-year basis, further supported by a 2.1 percent rise on a month-on-month basis. These gains point to improving industrial stability, enhanced input supply conditions and sustained demand both domestically and internationally.
One of the standout contributors during this period has been the automobile sector, which displayed exceptional performance from July to October FY2026. The sector’s output surged due to substantial increases in the production of multiple vehicle categories. Car manufacturing soared by 70.9 percent, marking one of the strongest growth figures seen in recent years. Production of trucks and buses increased even more dramatically, rising by 96.9 percent, underscoring a revival in commercial transport demand. Jeeps and pick-ups also recorded notable growth of 42.2 percent, reinforcing the sector’s broad-based upward trend.
The rising momentum in the automobile industry can be linked to improved supply chain conditions, higher availability of imported components and renewed consumer confidence. Auto financing channels, enhanced by digital processing tools, have also supported demand during the period.
Another major driver of the LSM rebound is the cement industry. Cumulative cement dispatches reached 17.3 million tonnes during July to October FY2026, representing a 15.5 percent increase. Domestic dispatches played a significant role in this performance, climbing to 13.9 million tonnes, an 18.1 percent year-on-year increase. At the same time, cement exports rose to 3.42 million tonnes, reflecting a 6 percent boost compared to the same period last year.
The upward movement in cement output aligns with ongoing infrastructure projects, renewed private sector construction activity and improved logistical efficiencies. The combination of domestic and export-driven demand has helped sustain the sector’s upward trend, making it one of the strongest performers within LSM.
Together, these improvements illustrate that Pakistan’s LSM sector is steadily regaining ground. The broad-based increase across manufacturing categories signals strengthening economic fundamentals and improved production rhythms. If these trends continue, they will support the broader economy in meeting its targeted growth trajectory for FY2026.
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