Pakistan’s large industry output increased 8.3% in Oct

Pakistan’s industrial sector showed strong signs of growth in October as manufacturing rose 8.3% from the same month last year, supported by strong gains in automobiles and petroleum industries, according to newly released official data.

The Large-Scale Manufacturing Index (LSMI), which tracks the output of major industries, rose 3.75% in September compared to the previous month.

On a year-over-year basis, the strongest contributors to the October reading were automobiles, up 65%; followed by petroleum products, 48.97%; manufacturing (football), 35.9%; other transport equipment, 29.77%; and fabrics, 26.11%.

The largest declines came from pharmaceuticals, which fell by 11.96% compared to the previous year. It was followed by machinery and equipment, which decreased by 5.86%, and iron and steel products by 2.40%.

In the first four months (July-October) of fiscal year 2026, the LSMI increased 5.02% from the same period a year earlier.

The official data stands in stark contrast with the claims of industrialists who have claimed that the economic activity is shrinking due to high input costs and excessive taxation.

On a monthly basis, the manufacturing of fabricated metal went up 18.21%, followed by tobacco 17.56%, wearing apparel 15.94% and non-metallic mineral products 15.63%.

Automobile production continues strong rebound

The growth in automobile production was driven by the manufacturing of buses, which went up 103.6%. The output of trucks increased by 79.89%, followed by jeeps and cars rose 64.2%.

Analysts attribute the rebound to lower manufacturing costs, stable tariffs, a revival in auto financing due to lower interest rates, reduced import restrictions on completely knocked-down (CKD) units, and improving macroeconomic conditions.

The sector is expected to continue expanding through FY26 as consumer demand strengthens and financing conditions improve.