Pakistan’s large-scale manufacturing rebounds with 4.08% growth in Q1 FY2025-26
- Sectors that contribute to growth include food, tobacco and textile
ISLAMABAD: The Large-Scale Manufacturing (LSM) sector showed signs of recovery as it registered a growth of 4.08 percent in the first quarter of the financial year 2025-26. According to indices, the LSM industries showed a growth of 4.08 percent during the July-September period compared to the same period of last year.
The LSM output increased by 2.69 percent in September 2025 as compared to the output in September last year. In August 2025, the LSM output registered a growth of 2.05percent compared with the overall output of the same sector in August 2024.
The main contributors in the overall growth of 4.08 percent as per their weightage in Quantum Index Numbers of Large Scale Manufacturing Industries (QIM) are food (0.91), tobacco (0.05), textile (0.34), garments (0.42), paper & board (0.13), petroleum products (-0.26), chemicals (-0.19), pharmaceuticals (-0.30), cement (0.83), iron & steel products (-0.16), electrical equipment (0.11), machinery and equipment (-0.04), automobiles (1.84), other transport equipment (0.20), and furniture (-0.40).
Aug LSM growth down 2.75pc MoM
The production in July-September 2025-26, as compared to July-September 2024-25, has increased in food (0.91percent), tobacco (0.04 percent), wearing apparel (0.42 percent), non-metallic mineral products (0.81 percent), electrical equipment (0.11 percent), automobiles (1.84 percent), and other transport equipment (0.20 percent).
A decline is witnessed in the following products: beverages (- 0.05 percent), chemical products (-0.13 percent), iron & steel products (-0.16 percent), machinery and equipment (- 0.04 percent), and furniture (- 0.40 percent). Experts are of the view that even though the exports are stagnant but the domestic manufacturing sector is showing a robust growth with a surge in demand for locally manufactured goods. They said that the majority of the imported items became out of reach of the masses mainly because of the high rate of dollar.
Copyright Business Recorder, 2025