Pakistan’s Large Scale Manufacturing (LSM) sector grew 5.77 percent during the first 11 months of fiscal year 2025-26, supported by strong performance in automobiles, food products, garments and petroleum products, even as industrial output dipped slightly in May.

According to data released by the Pakistan Bureau of Statistics, the Quantum Index of Manufacturing rose to 121.65 during July-May, up from 115.02 in the same period last year. On a monthly basis, manufacturing output fell 0.98 percent year on year in May, though it increased 1.21 percent compared with April.

The automobile industry was the biggest contributor to growth, with production rising 58.82 percent over the 11-month period. Car and jeep production climbed 60.60 percent, truck output jumped 76.88 percent, and bus production increased 23.66 percent.

Food products also posted healthy gains, with overall production rising 7.75 percent. Within the sector, sugar, bakery and chocolate output grew 31.54 percent. Petroleum products increased 10.56 percent, driven by higher production of petrol, high-speed diesel and LPG, which rose 13.04 percent, 17.01 percent and 14.56 percent respectively.

Garment production also improved, while garment exports rose 7.31 percent during the period.

Despite the broader recovery, several major industries remained under pressure. Pharmaceutical production declined 8.07 percent, iron and steel output fell 7.49 percent, chemicals dropped 2.64 percent and fertilizer production slipped 2.25 percent. The textile sector, Pakistan’s largest manufacturing industry, was largely flat, recording a marginal decline of 0.09 percent.