Pakistan’s Large-Scale Manufacturing Sector Recovers in July 2026
Pakistan’s Large-Scale Manufacturing (LSM) sector recorded a notable recovery in July 2026, with industrial output increasing both compared with the same month last year and the previous month.
According to data released by the Pakistan Bureau of Statistics (PBS), the Large-Scale Manufacturing Index rose 3.0% year-on-year in July and increased 9.5% month-on-month.
The LSM Index reached 119.13 in July, compared with 115.62 in July 2025 and 108.78 in June 2026.
Automobiles Lead Manufacturing Growth
The improvement in July was supported by strong growth in several industrial segments, particularly the automobile sector.
Automobile production recorded a 57.0% year-on-year increase, making it one of the major contributors to the overall improvement.
Other sectors that posted significant annual growth included:
- Wearing apparel: Up 22.0%
- Tobacco: Up 35.8%
- Other transport equipment: Up 40.2%
These increases helped offset declines recorded in several other major manufacturing categories.
Some Major Industries Continue to Decline
Despite the overall improvement, a number of important industrial sectors recorded lower output compared with July last year.
Pharmaceutical production declined 20.8%, while iron and steel products fell 11.4%.
The food sector recorded a 6.4% decline, while chemical production decreased by 6.2% year-on-year.
These figures indicate that the recovery was not uniform across all areas of large-scale manufacturing.
LSM Index Shows Strong Monthly Recovery
The July data also showed a significant improvement compared with the previous month.
The LSM Index increased from 108.78 in June to 119.13 in July 2026. June had recorded a 3.5% year-on-year decline and a 6.1% month-on-month contraction.
The index had also been declining for several months before the July recovery. It stood at 144.5 in March, before falling to 131.7 in April, 128.9 in May and 108.8 in June.
Manufacturing Sector Shows Signs of Improvement
The latest figures point to a recovery in Pakistan’s large-scale manufacturing sector after the weakness recorded in June.
However, continued declines in pharmaceuticals, food, chemicals, and iron and steel products show that industrial performance remains mixed across different sectors.
