Table of Contents
Manufacturing Sector Shows Mixed Performance
Pakistan’s large-scale manufacturing (LSM) output declined by 0.98% year-on-year in May 2026, according to data released by the Pakistan Bureau of Statistics .
On a month-on-month basis, however, industrial production increased by 1.21% in May compared with April 2026 . Overall LSM output grew by 5.77% during the July-May period of the 2025-26 fiscal year compared with the corresponding period of the previous year .
Strong Growth in Key Sectors
The automobile sector recorded a 20.81% increase in production in May, with cumulative output surging by 58.82% during the first 11 months of the fiscal year .
Sugar production rose by 23.25% in May and increased by 31.54% during the July-May period .
Petroleum products grew by 15.75% year-on-year in May, while garment production increased by 7.05% compared with the previous month .
Decline in Heavy Industries
Several industries recorded a decline in output:
- Iron and steel production fell by 12.57% in May
- Cement production declined by 9.36% on a month-on-month basis
- Fertiliser production decreased by 4.77% during the month
The PBS also noted production declines in some segments of the pharmaceutical, chemical, and textile industries .
Economic Context
The mixed performance reflects ongoing challenges in Pakistan’s industrial sector, with some industries showing resilience while others continue to face headwinds from rising input costs and subdued demand . The significant surge in automobile production suggests recovery in consumer durables, while declines in heavy industries like steel and cement may signal broader infrastructure and construction sector pressures .
