By Ayesha Saba

Pakistan’s large-scale manufacturing sector expanded 4.98% during July-June FY2025-26 compared with the same period of the previous year, with automobiles, food, wearing apparel, petroleum products and cement among the major contributors to overall growth. According to the latest provisional data released by the Pakistan Bureau of Statistics (PBS), the Quantum Index of Manufacturing (QIM) for July-June FY2025-26 stood at 120.55, compared with 114.83 in the corresponding period of 2024-25. Automobiles emerged as the fastest-growing major segment, with production rising 57.77% during July-June FY2025-26.

Other transport equipment recorded growth of 42.36%, while electrical equipment increased 14.25%. Coke and petroleum products also maintained strong momentum, posting 9.70% growth over the year, while cement production increased 7.36%. Wearing apparel expanded 5.49%, providing another positive contribution to overall manufacturing performance. Among other expanding sectors, food production increased 7.03%, beverages 3.09%, tobacco 12.61%, rubber products 14.19%, fabricated metal products 9.65%, and machinery and equipment 2.95%.

Furniture production rose 22.69%, while other manufacturing, including football production, increased 16.62%. The biggest positive contribution to the overall 4.98% growth came from automobiles, with an impact of 1.56 percentage points, followed by food at 1.21 points, wearing apparel at 0.91 points and petroleum products at 0.72 points. Cement contributed 0.41 points, electrical equipment 0.37 points, furniture 0.28 points and other transport equipment 0.27 points. The full-year improvement came despite weaker manufacturing activity in June.

The QIM for June 2026 stood at 108.83, with LSM output declining 3.48% compared with June 2025 and 6.08% compared with May 2026. Several major industries also remained under pressure during the full July-June period. Textile production declined 0.63%, chemicals 2.53%, pharmaceuticals 8.87%, and iron and steel products 7.84%. Leather products fell 1.95%, while wood products declined 0.45%.

The PBS data show that production increased during FY2025-26 in food, beverages, tobacco, wearing apparel, paper and board, coke and petroleum products, rubber products, non-metallic mineral products, fabricated metal, electrical equipment, machinery and equipment, automobiles, other transport equipment, furniture and other manufacturing.

Meanwhile, textile, leather, wood, chemicals, pharmaceuticals and iron and steel products recorded declines. Overall, gains across automobiles, food, wearing apparel, petroleum products, cement and electrical equipment were sufficient to keep large-scale manufacturing in positive territory during FY2025-26, despite declines in several industrial categories and a slowdown in June.

Credit: INP-WealthPk