ISLAMABAD: Large-Scale Manufacturing (LSM) posted a paltry 0.67 per cent growth in August, signalling a slowdown in the industrial sector.
The Quantum Index of Manufacturing stood at 113.19 in August, up from 112.45 in the corresponding month of the last year. On a month-on-month basis, production fell by 4.96pc in August from July, the Pakistan Bureau of Statistics said on Friday.
In the first two months (July-August) of 2026-27, the LSM grew modestly by 1.85pc YoY. Industrial activity rebounded 3.03pc in July after production contracted sharply by 3.48pc in June.
In FY26, LSM sector output expanded 4.98pc on YoY basis, suggesting industrial production regained some ground.
The main contributors to overall growth in 2MFY27 were tobacco (0.37 percentage points), wearing apparel (2.85), petroleum products (1.17), cement (0.07), electrical equipment (0.13pc), automobiles (1.20), other transport equipment (0.27), and furniture (0.43).
However, the recovery was uneven, with food dragging LSM growth by 1.20 percentage points, beverages (-0.37), textiles (-0.52), chemicals (-0.89), pharmaceuticals (-0.86), iron & steel products (-0.48), machinery and equipment (-0.01).
The weakness in textiles is particularly significant given the sector’s weight in Pakistan’s manufacturing and export base, suggesting that the improvement in headline LSM growth did not extend evenly across some of the country’s major industrial activities.
Negative contributions from textiles, pharmaceuticals, chemicals, and iron and steel suggest that while industrial production recovered in July as a whole, momentum remained fragile and concentrated in a relatively small group of industries.
The food group dipped 8.86pc in July-August YoY. Wheat and rice milling declined 3.38pc. The cooking oil production decreased 20.46pc, vegetable ghee production fell 16.57pc. However, tea blended posted a negative growth of 2.84pc.
The overall textile sector partly posted a negative growth of 2.98pc in 2MFY27 on a YoY basis. Cotton yarn rose 2.09pc, while cotton cloth fell 0.03pc, accounting for more than 80pc of the textile sector. Garment exports grew 16.69pc.
Coke and petroleum products surged 15.48pc in 2MFY27. Most petroleum products posted positive production growth during the months under review. Petrol production rose by 24.69pc, while high-speed diesel rose by 10.10pc. LPG production rose by 17.65pc, and kerosene by 28.10pc during the months under review. However, furnace oil output dipped by 44.37pc.
The automobile sector grew 32.45pc in 2MFY27 YoY. This growth was mainly driven by a 30.45pc rise in jeeps and cars, followed by trucks at 77.70pc and buses at 13.91pc. However, LCV production declined 15.99pc.
Pharmaceutical production dipped 14.57pc, and fertiliser production fell 7.55pc. Iron and steel production declined 11.48pc in 2MFY27. The production of rubber products surged by 2.50pc, non-metallic minerals by 0.20pc and electrical equipment by 4.99pc.
Published in Dawn, October 17th, 2026
