Big industry output falls 1% YoY in May 2026

July 15, 2026 (MLN): Pakistan's Large Scale Manufacturing Industries (LSMI) output fell 0.98% year-on-year (YoY) in May 2026, even as it rose 1.21% month-on-month (MoM), according to provisional data released with base year 2015-16.

The Quantum Index of Manufacturing (QIM) was recorded at 116.10 in May 2026, compared to 117.25 in May 2025 and 114.71 in April 2026.

On a cumulative basis, the sector posted 5.77% growth during July–May FY26, with the QIM averaging 121.65, up from 115.02 in the same period last year.

Automobiles, sugar and petroleum products led the month's performance, while iron and steel, fertilizers and cement weighed on monthly output.

Growth of Major Manufacturing Items

The automobile sector maintained its growth trajectory with a 20.81% increase in May and a cumulative 58.82% surge during July–May FY26. Sugar posted a strong monthly gain of 23.25%, contributing to a 31.54% cumulative expansion over the eleven-month period.

Petroleum products grew 15.75% in May, sustaining a 10.56% cumulative gain, while garments rose 7.05% during the month, taking cumulative growth to 7.31%.

Cement declined 9.36% in May despite retaining a 7.16% cumulative gain. Fertilizers contracted 4.77% in May, with the cumulative decline at 2.25%. Iron and steel continued its downward trend, falling 12.57% in May and 7.49% cumulatively.

Sectoral Contributions

The main contributors toward the overall 5.77% cumulative growth were automobiles (1.53 percentage points), food (1.36), garments (1.20), petroleum products (0.78), electrical equipment (0.35), cement (0.40), furniture (0.33), other transport equipment (0.26), beverages (0.24), and tobacco (0.20).

Conversely, pharmaceuticals (-0.49), iron and steel products (-0.32), chemicals (-0.21), and textile (-0.02) weighed on overall growth, while leather products (-0.02) also posted a negative contribution.

The mixed performance in May reflects a slowdown in month-specific momentum even as cumulative manufacturing growth held firm, with automobiles, food and garments continuing to anchor the sector while pharmaceuticals, iron and steel, and chemicals remained under pressure.

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