Large Scale Manufacturing Rebounds in July, Grows 3% Year-on-Year

Pakistan's Large Scale Manufacturing sector experienced a notable rebound in July 2026, with the Large Scale Manufacturing Index increasing by 3.0 percent year-over-year and 9.5 percent month-over-month, according to figures released by the Pakistan Bureau of Statistics. The LSM Index stood at 119.13 in July, marking a significant rise from 115.62 in the same month of the previous year and 108.78 in June 2026.

The robust growth in July was primarily attributed to the strong performance of the automotive sector, which expanded by 57.0 percent year-over-year. Other contributing sectors included wearing apparel, which saw a 22.0 percent increase, tobacco, up by 35.8 percent, and other transport equipment, which grew by 40.2 percent.

However, the overall growth was tempered by declines in key industrial segments. Pharmaceuticals contracted by 20.8 percent, iron and steel products declined by 11.4 percent, food manufacturing fell by 6.4 percent, and chemicals experienced a 6.2 percent decrease.

This monthly trend reflects a recovery from three consecutive months of decline, with the index falling from 144.5 in March 2026 to 108.78 in June. Despite this downward streak, the July figures indicate a broad improvement in large scale manufacturing compared to the sharp contraction observed in June. Nonetheless, several major industrial segments continued to record year-over-year declines, underscoring the mixed nature of the sector's performance.