Pakistan’s Large Scale Manufacturing (LSM) sector saw robust growth in January 2026, with the LSM Index climbing 10.5 percent year-on-year (YoY) and 12.1 percent compared to the previous month.

During the first seven months of the 2025-26 fiscal year, the index expanded by 5.8 percent YoY, signaling steady industrial momentum.

The growth in January was largely fueled by a dramatic 67 percent YoY jump in automobile production. Other key contributors included sugar production, which rose 24 percent, while the garments and cement industries each recorded an 11 percent increase.

Not all sectors fared equally well. Furniture production dropped 19.4 percent YoY, machinery and equipment output declined by 8.87 percent, and leather products saw a marginal decrease of 2.94 percent in January.