LSM grows 5.89pc in July-February FY26

ISLAMABAD: Pakistan’s large-scale manufacturing (LSM) sector recorded year-on-year growth of 5.89pc during July-February of FY26, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.

The PBS figures showed industrial production in February alone increased 6.45pc compared to the same month a year earlier. On a month-on-month basis, however, LSM output fell 8.97pc in February.

Industrial output has recovered over the last five consecutive months after sluggish growth earlier. July 2025 posted growth of 8.99pc, which slowed to 0.54pc in August. It then reversed by 2.69pc in September, followed by 8.33pc in October, 10.37pc in December and 10.5pc in January.

Performance across sectors

The food group expanded 5.26pc in the first eight months of FY26. Wheat and rice milling rose 2.32pc during the period, mainly due to improved crop harvests. Cooking oil production increased 2.95pc, while vegetable ghee output declined 2.48pc. Tea blended also fell 9.64pc.

The textile sector posted growth of 1.61pc in 8MFY26. Cotton yarn increased 2.23pc, while cotton cloth edged up 0.20pc. These two segments account for more than 80pc of the textile sector. The slowdown in production was mainly caused by a slight decline in export unit value amid weaker demand for textiles.

At the same time, garment exports rose 7.16pc year-on-year in 8MFY26. The rebound in garments production over the past five months, after earlier sluggish growth, pointed to a revival in export orders from the sector.

Coke and petroleum products registered growth of 11.98pc during the period under review. Among petroleum products, petrol production rose 13.51pc and high-speed diesel increased 19.72pc. LPG output jumped 12.96pc, while kerosene production went up 10.39pc. Furnace oil output, however, declined 2.08pc.

Auto sector leads gains

The automobile sector recorded growth of 61.66pc in July-February FY26. PBS data showed jeep and car production surged 62.29pc, truck production rose 88.79pc, and bus production increased 37.21pc. In contrast, light commercial vehicle production fell 2.43pc compared to the same period last year.

Among other sectors, pharmaceutical production declined 4.94pc and fertiliser output slipped 0.15pc.

Iron and steel production fell 5.70pc in 8MFY26. Billets and ingots, which are mostly used in the construction industry, declined 15.03pc. H/CR sheets, strips, coils and plates also decreased 1.85pc.

The PBS data further showed that rubber products grew 13.19pc, non-metallic minerals increased 10.11pc, and electrical equipment posted growth of 9.99pc during the first eight months of the fiscal year.