- September 2, 2026
- Posted by: Tresmark
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Pakistan’s manufacturing sector recorded its strongest performance since the onset of the Middle East war, with the HBL Pakistan Manufacturing Purchasing Managers’ Index (PMI) rising marginally to 51.8 in August from 51.7 in July, according to a statement issued Tuesday.
Although the expansion remained modest, the latest reading pointed to continued improvement in underlying demand, supported by stronger domestic orders and sustained growth in export demand.
New orders show stronger momentum
Manufacturers reported that new orders grew at their fastest pace in five months, helped by improvements in product quality and competitive pricing strategies.
Export orders also increased for the fourth consecutive month, indicating continued resilience in external demand. The stronger order pipeline helped sustain manufacturing output, which expanded at a pace broadly comparable to July.
However, manufacturers remained cautious about significantly increasing production as persistent inflationary pressures continued to weigh on business decisions.
Purchasing and inventories increase
Manufacturing companies raised purchasing activity for the third consecutive month and continued accumulating inventories in anticipation of stronger demand in the coming months.
Employment remained broadly stable during August. While some companies hired selectively to manage higher order volumes, broader recruitment remained constrained by ongoing efforts to control costs.
Supply-chain conditions also improved, with delivery delays easing to their lowest level since November 2025, providing further support to manufacturing operations.
Business confidence strengthens
Business sentiment toward output over the next 12 months improved during August, reaching one of the highest levels recorded so far this year.
Humaira Qamar, Head of Equities and Research at HBL, said the improvement in confidence was driven by expectations of continued sales growth and easing price pressures.
The latest PMI reading suggests that Pakistan’s manufacturing sector is gradually gaining momentum, with improving domestic and export demand providing support despite continued concerns over inflation and production costs.
