July–May LSM records 5.77% annual growth.

Pakistan's Large Scale Manufacturing (LSM) sector recorded 5.77% year-on-year growth during July–May FY2025-26, according to provisional data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.

 

The Quantum Index of Manufacturing (QIM) reached 116.10 points in May 2026, reflecting a 1.21% increase compared with April. However, on a year-on-year basis, the index declined 0.98% from 117.25 points recorded in May 2025.

 

According to the PBS, the overall expansion was mainly supported by strong performances in the automobile, sugar, food, garments, and petroleum products sectors.

 

The automobile industry remained the largest contributor, posting 20.81% growth in May and a cumulative 58.82% increase during July–May FY26.

 

The sugar sector recorded 23.25% monthly growth and 31.54% cumulative growth, while garments expanded 7.05% in May and 7.31% during the fiscal period, reflecting continued strength in export-oriented manufacturing.

 

Production of petroleum products increased 15.75% in May and 10.56% cumulatively. Cotton cloth registered 0.04% monthly growth and 0.17% cumulative growth, while cotton yarn declined 1.28% in May but still recorded 1.26% growth over the July–May period.

 

Several industries, however, remained under pressure. Cement production fell 9.36% in May and declined 7.16% cumulatively, while the iron and steel sector contracted 12.57% during the month and 7.49% over the fiscal period. Fertiliser production also dropped 4.77% in May and 2.25% on a cumulative basis.

 

PBS data showed that the main contributors to the overall 5.77% LSM growth included automobiles (1.53 percentage points), food (1.36 points), garments (1.20 points), petroleum products (0.78 points), cement (0.40 points), electrical equipment (0.35 points), furniture (0.33 points), other transport equipment (0.26 points), beverages (0.24 points), tobacco (0.20 points), and machinery and equipment (0.0001 points). Negative contributions came from pharmaceuticals (-0.49 points), iron and steel (-0.32 points), chemicals (-0.21 points), and textiles (-0.02 points).

 

On a monthly basis, the food sector grew 7.43%, while its cumulative and annual growth stood at 1.36% and 7.75%, respectively. The tobacco sector expanded 13.26% in May, with cumulative and annual growth of 0.20% and 12.79%. Rubber products rose 6.58% during the month and 14.20% year-on-year, while the textile sector recorded 4.35% monthly growth, with cumulative growth of 0.09% and annual growth of 0.02%.