Pakistan manufacturing output falls 4.96% in August
LSM output rose 1.85% in July-August, the first two months of fiscal year 2026-27, the PBS report showed.
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan’s large-scale manufacturing (LSM) sector grew 0.67% year-on-year in August 2026, but output fell 4.96% from July, reflecting uneven performance across major industrial segments, according to data released by the Pakistan Bureau of Statistics (PBS).
LSM output rose 1.85% in July-August, the first two months of fiscal year 2026-27, the PBS report showed.
The month-on-month decline in August came amid contractions in iron and steel, fertilizer, cement, food and beverages, while petroleum products, automobiles and garments recorded annual growth.
Petroleum product output surged 31.85% year-on-year in August, while automobile production rose 11.66% and garment production increased 10.85%.
In contrast, fertilizer production fell 9% year-on-year, while iron and steel output declined 11.56%. Cement production dropped 3.52%, food output fell 1.20%, and beverage production decreased 0.37%. Paper and board output declined 0.15%, while chemical production fell 0.89%.
Tobacco production rose 0.37% during the month, while wood products and rubber output increased 0.07% and 0.01%, respectively. Furniture production grew 0.43%.
Automobiles remained a key growth driver in the first two months of the fiscal year, with output rising 32.45% year-on-year in July-August. Garment production increased 16.69% over the same period.
However, iron and steel production fell 11.48% during July-August, underscoring continued weakness in a key industrial segment linked to construction and infrastructure activity.
An analyst said the August figures pointed to an uneven industrial recovery, as growth in petroleum products, automobiles and garments was offset by declines in steel, fertilizer and cement.
“The 4.96% month-on-month decline is a key indicator to watch, as it suggests that the recovery remains fragile despite positive year-on-year growth,” the analyst said.
Sustained industrial expansion would depend on a broader recovery across manufacturing segments, particularly construction-related industries, as well as improved demand, capacity utilization and business confidence, the analyst added.
Overall, LSM output remained above year-earlier levels in July-August, but the August contraction suggested that industrial momentum had weakened.
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