Pakistan’s Large-Scale Manufacturing Growth Revives with 5.77% Year-on-Year Growth in First 11 Months of FY26

This marks a significant recovery in industrial production, driven by strong performance in key sectors such as automobiles, garments, food products, and petroleum. The Quantum Index of Manufacturing (QIM) rose to 121.65 during July-May FY26, up from 115.02 in the same period the previous year. Text
The growth was primarily attributed to the automobile sector, which contributed 1.53 percentage points to the overall increase after production surged 58.82 percent in 11MFY26. Food products added 1.36 points, while garments and petroleum products contributed 1.20 and 0.78 points, respectively. However, the sector faced a temporary slowdown in May, with LSM production declining 0.98 percent year-on-year, though it rebounded with a 1.21 percent growth over April. Subheading
Automotive and Food Sectors Lead Recovery

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The automobile industry’s sharp expansion was fueled by a 60.60 percent rise in jeep and car production, alongside 76.88 percent growth in trucks and 23.66 percent in buses. Despite this, light commercial vehicle production fell 11.27 percent compared to the previous year. The food sector saw a 7.75 percent annual increase, with sugar, bakery, and chocolate production surging 31.54 percent. Wheat and rice milling grew 0.76 percent, while starch production rose 0.13 percent. Text
Petroleum products also saw robust growth, with coke and petroleum output jumping 10.56 percent. Petrol production increased 13.04 percent, and high-speed diesel rose 17.01 percent. LPG production climbed 14.56 percent, though kerosene declined 4.12 percent. Furnace oil output dipped 0.76 percent, reflecting mixed performance within the energy sector. Subheading
Persistent Challenges in Key Industries

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Despite the overall growth, several industries continued to drag on manufacturing activity. Pharmaceutical production contracted 8.07 percent, while chemicals declined 2.64 percent. Iron and steel output fell 7.49 percent, and fertilizer production dropped 2.25 percent. The textile sector, the largest by index weightage, remained nearly flat, posting a marginal 0.09 percent decline. Text
The textile sector’s stagnation was linked to a slight drop in export unit values due to weakened demand. However, garment exports rose 7.31 percent in 11MFY26. Cotton yarn and cloth production increased by 1.26 percent and 0.17 percent, respectively, accounting for over 80 percent of the sector’s output. Subheading
Mixed Performance in Energy and Manufacturing

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Rubber products and non-metallic minerals saw significant gains, with production surging 14.20 percent and 6.31 percent, respectively. Electrical equipment grew 13.50 percent, while iron and steel production declined. The beverages and tobacco sectors also contributed positively, though specific figures were not detailed in the report. Text
The July-May FY26 figures provide a snapshot of a manufacturing sector navigating both gains and challenges.