ISLAMABAD: Despite a declining trend in exports, Pakistan’s large-scale manufacturing (LSM) sector recorded an impressive growth of 5.02 percent during the first four months (July–October) of fiscal year 2025–26, compared with the corresponding period of last year.
According to statistics released by the Pakistan Bureau of Statistics, in October alone, the LSM sector showed a robust growth of 8.33 percent on a year-on-year (YoY) basis and a 3.75 percent increase on a month-on-month (MoM) basis.
The main contributors in the overall growth of 5.02 percent as per their weightage in Quantum Index Numbers of Large Scale Manufacturing Industries (QIM) are food (0.66), tobacco (0.04), textile (0.28) garments (0.83), paper & board (0.10), petroleum products (0.89), chemicals (-0.16), pharmaceuticals (-0.43), cement (0.83), iron & steel products (-0.15), electrical equipment (0.17), machinery and equipment (-0.04), automobiles (1.82), other transport equipment (0.22), and furniture (-0.26).
Major sectors challenge govt’s claims of LSM output ‘recovery’
The production in July-October 2025-26, as compared to July-October 2024-25, has increased in food, beverages, tobacco, textile, wearing apparel, leather products, paper & board, coke & petroleum products, rubber products, non-metallic, mineral products, fabricated metal, computer, electronics and optical products, electrical equipment, automobiles, and other transport equipment.
A reduction in the output was noted in wood products, chemical products, pharmaceuticals, iron & steel products, machinery, equipment, and furniture.
Experts are of the view that the impressive growth in the automobile sector is mainly responsible for this impressive growth, as it was up by 79 percent on a YoY basis in October. They also said that even though the exports are showing a downward trend, the domestic manufacturing sector is showing 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 dollar rate.
The exports showed a downward trend of 14.54 percent to USD 12.87 billion in the first five months of the current fiscal year, compared to USD 13.72 billion in the same period of last year.
Copyright Business Recorder, 2025