By Abdul Ghani

Pakistan’s large-scale manufacturing (LSM) sector recorded a strong recovery during the current fiscal year, reversing last year’s contraction and showing broad-based growth across key industries.

According to the “Monthly Economic Update & Outlook April 2026” released by the Finance Division and available with Wealth Pakistan, LSM registered a growth of 5.9% during July-February FY2026, compared to a contraction of 1.8% in the same period last year.

The data indicates that the recovery in industrial activity was supported by multiple sectors, with 15 out of 22 industries recording positive growth during the period. This reflects a broad-based improvement in manufacturing performance across the economy.

Key contributors to LSM growth included automobiles, wearing apparel, food, and coke and petroleum products. These sectors contributed 1.5%, 1.2%, 1.0%, and 0.9%, respectively, to the overall growth, highlighting their role in driving industrial output.

The automobile sector showed particularly strong performance. During July-March FY2026, production of trucks and buses increased by 78.3%, while car production rose by 51.3%. Production of two- and three-wheelers increased by 31.4%, and jeeps and pick-ups grew by 24.0%, reflecting robust activity within the sector.

The report also highlights positive performance in other manufacturing segments. Growth was recorded in textiles, non-metallic mineral products, beverages, electrical equipment, and tobacco, indicating a diversified expansion across industries.

Cement production also showed improvement, reflecting increased construction and infrastructure activity. Cumulative cement dispatches grew by 9.8% during July-March FY2026, reaching 38.5 million tonnes.

Domestic cement dispatches increased by 10.6% to 31.6 million tonnes, while exports grew by 6.3%, reaching 6.9 million tonnes during the period. This indicates that both domestic demand and export activity contributed to the sector’s overall growth.

Monthly data shows some variation in industrial output. In February 2026, LSM recorded a year-on-year growth of 6.5%, while on a month-on-month basis it declined by 9.0%. The monthly decline was attributed to reduced production in iron and steel products, leather products, and pharmaceuticals.

Despite short-term fluctuations, the overall trend reflects sustained growth in the manufacturing sector during FY2026. The increase in output across multiple industries indicates a recovery in industrial activity compared to the previous year.

The report suggests that the expansion in manufacturing is supported by increased demand and improved performance across key sectors, as reflected in the official data.

The data highlights a continued upward trajectory in large-scale manufacturing, contributing to overall economic growth during the current fiscal year.

Credit: INP-WealthPk