Pakistan's large-scale manufacturing sector recorded a sharp double-digit expansion in January, driven by strong gains in automobiles and garments, though underlying data reveal uneven performance across industries.

Figures released by the Pakistan Bureau of Statistics show that Large Scale Manufacturing Industries (LSMI) output grew by 10.54% in January 2026 compared with the same month a year earlier. On a month-on-month basis, production rose even more sharply, increasing by 12.08% over December 2025.

Despite the strong January performance, cumulative growth during July-January 2025-26 stood at 5.75% compared with the corresponding period last year. The expansion was supported by several key sectors, with automobiles contributing 1.61 percentage points and garments adding 1.34 points to overall growth.

Other contributors included petroleum products (0.85), cement (0.64), food (0.58), electrical equipment (0.25) and other transport equipment (0.24). Tobacco and textiles also made modest positive contributions.

However, not all industries shared in the upturn. Output in chemicals, pharmaceuticals and iron and steel products weighed on overall growth, alongside declines in machinery and equipment. Paper and board registered a slight negative contribution, reflecting mixed trends within the sector.

A broader breakdown indicates that production increased in food, beverages, tobacco, textiles, wearing apparel, petroleum-related products, rubber goods, non-metallic minerals, fabricated metals, electronics, electrical equipment, automobiles and transport equipment.

Conversely, declines were observed in leather products, chemicals, pharmaceuticals, iron and steel, as well as machinery and equipment.

The data suggest that while Pakistan's manufacturing sector is gaining momentum, its recovery remains uneven, with gains concentrated in select industries rather than broadly distributed across the industrial base.