Pakistan’s Large-Scale Manufacturing Sees Modest Growth Amid Slowdown

ISLAMABAD: Pakistan’s Large-Scale Manufacturing (LSM) sector recorded a modest growth of 0.67 percent in August, indicating a slowdown in industrial activity. The Quantum Index of Manufacturing rose to 113.19 in August from 112.45 in the same month last year, according to the Pakistan Bureau of Statistics.

Despite this annual increase, the LSM experienced a significant month-on-month decline of 4.96 percent from July. Over the first two months of the fiscal year 2026-27, LSM grew by 1.85 percent year-on-year, following a rebound of 3.03 percent in July after a sharp contraction of 3.48 percent in June.

The overall growth in the LSM for FY26 was 4.98 percent year-on-year, suggesting a partial recovery in industrial production. Key contributors to this growth included tobacco (0.37 percentage points), wearing apparel (2.85), petroleum products (1.17), and automobiles (1.20), while sectors such as food and textiles negatively impacted growth.

Looking ahead, stakeholders are concerned about the uneven recovery across sectors, particularly with food and beverages dragging down overall performance. Analysts anticipate that upcoming policy measures will be critical in addressing these challenges and stimulating further growth in the industrial sector.