Pakistan's large-scale manufacturing sector has returned to growth, expanding by 4.82 percent in the first half of the fiscal year, signalling a tentative industrial recovery even as several key segments continue to lag behind.
According to provisional data released by the Pakistan Bureau of Statistics, output from Large Scale Manufacturing Industries (LSMI) rose during July-December 2025-26 compared with the same period a year earlier. The uptick reflects a broad-based improvement across multiple sectors, though the recovery remains uneven.
On a monthly basis, industrial production edged up by 0.44 percent in December 2025 compared with the same month last year. More strikingly, output jumped 9.26 percent compared with November, indicating a short-term acceleration in activity.
Growth was driven by a diverse set of industries. Automobiles contributed the most, adding 1.57 percentage points to overall expansion. Garments followed with 1.25 percent, while petroleum products and cement added 0.98 percent and 0.66 percent respectively. Other contributors included textiles, electrical equipment, food, tobacco and transport equipment.
The data suggests that consumer-linked and construction-related sectors are helping to lift industrial output. Gains were also recorded in beverages, paper and board, rubber products, non-metallic minerals, fabricated metals, electronics and optical goods.
Yet the rebound is far from uniform. Several industries registered declines during the same period, including leather goods, wood products, chemicals, pharmaceuticals, iron and steel, machinery and equipment, and furniture. These contractions underline persistent structural weaknesses in parts of the manufacturing base.
The mixed performance highlights both resilience and fragility within the industrial landscape. While headline growth points to a recovery in production, disparities across sectors suggest that the expansion remains selective rather than comprehensive.
For policymakers, the figures offer cautious optimism. Industrial activity is picking up, but sustaining momentum will likely depend on addressing bottlenecks in underperforming segments while consolidating gains in sectors currently driving the rebound.