Pakistan’s Large Scale Manufacturing (LSM) sector experienced a notable 10.37 percent growth in November, despite ongoing challenges posed by a continuous decline in exports. This growth was primarily driven by strong output in the automobile, petroleum, garments, and cement industries.
LSM Growth Overview
According to data from the Pakistan Bureau of Statistics (PBS), the LSM sector expanded by 6.01% during the July-November period of the fiscal year 2025-26, compared to the same period last year. On a month-to-month basis, the sector saw a modest increase of 0.16 percent.
Sector Contributions to Growth
The overall 6.01 percent growth is attributed to various industries based on their weight in the Quantum Index Numbers of LSM Industries:
- Food: 0.47
- Tobacco: 0.06
- Textile: 0.32
- Garments: 1.24
- Paper & Board: 0.07
- Petroleum Products: 1.29
- Chemicals: -0.12
- Pharmaceuticals: -0.34
- Cement: 0.78
- Iron & Steel Products: -0.17
- Electrical Equipment: 0.22
- Machinery and Equipment: -0.05
- Automobiles: 1.77
- Other Transport Equipment: 0.24
- Furniture: -0.19
Performance Highlights by Industry
Year-on-year production increases from July to November 2025-26 include:
- Automobile sector: 75%
- Coke and petroleum products: 18.06%
- Cement: 13.47%
- Garments: 7.14%
Additional growth was also recorded in food, beverages, tobacco, paper & board, rubber products, non-metallic mineral products, fabricated metal, computer, electronics and optical products, and electrical equipment.
Conversely, declines were observed in leather products, wood products, chemical products, pharmaceuticals, iron & steel products, machinery and equipment, and furniture manufacturing.
Expert Insights and Export Concerns
Industry experts suggest that the reduction in imports has stimulated domestic production growth. However, the continuous decline in exports over five months raises questions about the sustainability and accuracy of the LSM growth figures.
It is important to note that during the first half of fiscal year 2025-26 (July-December), export proceeds fell by 8.70 percent, reaching USD 15.184 billion compared to USD 16.63 billion in the same period last year.
