Pakistan’s large-scale manufacturing (LSM) sector posted solid growth during the ongoing fiscal year, expanding by 5.8 percent in the first seven months of FY26, reflecting improving industrial activity.
According to official data, the Large Scale Manufacturing Index surged 10.5 percent year-on-year in January 2026, while also recording a strong 12.1 percent increase compared to the previous month.
The growth momentum in January was largely driven by a sharp rise in key sectors. Automobile production led the expansion with an impressive 67 percent year-on-year increase. Other contributors included sugar production, which grew by 24 percent, while garments and cement sectors both recorded 11 percent growth.
Despite the overall positive trend, some industries faced declines during the same period. Furniture output dropped by 19.4 percent year-on-year, while machinery and equipment production fell by 8.87 percent. The leather products sector also recorded a slight decline of 2.94 percent.
Experts say the continued growth in the LSM sector signals gradual recovery in industrial output, although uneven performance across sectors highlights ongoing challenges in certain industries.
