Pakistan’s large-scale manufacturing sector grew 3% year-on-year in July, starting FY27 with higher output as strong gains in apparel and automobiles offset contractions in several major industries, according to Pakistan Bureau of Statistics data and Foundation Securities analysis.
How much did Pakistan’s large-scale manufacturing grow in July?
Pakistan’s LSM output rose 3% year-on-year in July and 9.5% from June, with the Quantum Index of Manufacturing climbing to 119.1. Wearing apparel and autos drove most of the annual increase, while food, pharmaceuticals, textiles and steel remained a drag on overall performance.
The Quantum Index of Manufacturing rose from 115.6 in July 2025 and 108.8 in June 2026, according to Foundation Securities.
The July increase followed 4.98% growth in large-scale manufacturing during FY26, according to the latest PBS data. LSM output had declined in the previous fiscal year.
The latest figures therefore extend the sector’s recovery, although performance remains uneven across individual manufacturing industries.
Which sectors drove large-scale manufacturing growth in July?
Wearing apparel was the largest positive contributor to July’s year-on-year growth, with output rising 22%.
The segment carries a 6.1% weight in the LSM index and added 3.9 percentage points to overall growth, according to Foundation Securities.
Automobile production surged 57% from a year earlier, contributing another 1.9 percentage points to LSM growth. Auto output, however, declined 6.5% from June.
Tobacco production increased 35.8% year-on-year and contributed 0.6 percentage point, while non-metallic mineral products rose 4.3% and added 0.3 percentage point.
Other transport equipment expanded 40.2%, electrical equipment increased 7.9%, furniture production gained 10.1% and fabricated metal products rose 13.6%.
Coke and petroleum products also recorded growth, with production increasing 1.3% year-on-year and contributing 0.1 percentage point to the overall LSM increase.
Which manufacturing sectors remained under pressure?
The industrial recovery remained uneven, with several major manufacturing groups continuing to record year-on-year declines.
Food production, which carries a 10.7% weight in the LSM index, fell 6.4% and reduced overall growth by 0.8 percentage point.
Pharmaceutical output dropped 20.8%, making it the largest negative contributor among the listed sectors. The decline subtracted 1.2 percentage points from overall LSM growth.
Textile production fell 3.1%, while chemicals declined 6.2% and iron and steel products contracted 11.4%.
Beverage production decreased 8.8%, while machinery and equipment output fell 13.3%.
How did large-scale manufacturing perform in FY26?
Pakistan’s large-scale manufacturing sector expanded 4.98% during FY26, according to PBS data.
Automobiles were the strongest contributor, with production rising 57.77% during the fiscal year and adding 1.56 percentage points to overall LSM growth.
Petroleum products grew 9.70%, garments increased 5.49%, cement production rose 7.36% and electrical equipment expanded 13.50%.
Some major industries remained weak. Iron and steel products declined 7.84%, fertilizers fell 1.99% and pharmaceuticals remained under pressure.
The Finance Ministry’s Economic Survey had reported 6.5% LSM growth during July-March FY26 and estimated full-year FISIM-adjusted growth at 6.1%. The latest PBS data subsequently showed actual full-year LSM growth of 4.98%.
The difference reflects stronger growth during the first nine months of FY26 before the pace moderated toward the end of the fiscal year.
July therefore marked a positive start to FY27, with output rising sharply from June and remaining above its year-earlier level despite significant differences in performance across manufacturing segments.
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