Pakistan’s Large-Scale Manufacturing (LSM) sector recorded a 5 percent year-on-year increase during the first half of FY26, signaling a strong rebound in industrial activity. December 2025 alone showed a 0.4 percent YoY rise and a 9.3 percent month-on-month growth, highlighting improving momentum in key industries.
The growth was led by a 31 percent surge in automobile production, while wearing apparel rose 9 percent, cement and non-metallic minerals each grew 3 percent, and textiles increased 2 percent. However, some sectors experienced declines, including fertilizers (-10%), pharmaceuticals (-6%), and food production (-6%).
Analysts say the LSM performance reflects a positive trajectory for Pakistan’s industrial sector, with revised growth targets for FY26 raised to 4 percent, up from an earlier 2.5 percent. Continued support, investment, and improved market conditions are expected to sustain this industrial momentum.
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