Big industry output grows 0.4% YoY in December

February 17, 2026 (MLN): Pakistan's large-scale manufacturing sector maintained its growth trajectory in December 2025, with the Quantum Index of Manufacturing (QIM) reaching 128.51, which reflected continued industrial momentum driven by strong performances in automobiles, garments and petroleum products.

According to provisional data with base year 2015-16, Large Scale Manufacturing Industries (LSMI) output grew 0.44% year-on-year (YoY) in December 2025, while posting a robust 9.26% month-on-month (MoM) increase compared to November 2025.

On a cumulative basis, the sector recorded 4.82% growth during July–December FY26, with the QIM averaging 117.70, up from 112.28 in the same period last year.

The automobile sector continued to lead the growth trajectory with a strong 31.22% increase in December and a cumulative 67.21% surge during July–December FY26.

Garments maintained strong momentum with 9.24% monthly growth and a 7.48% cumulative expansion.

Cotton yarn posted a healthy 5.26% increase in December, contributing to the textile sector's steady recovery.

Cement production grew 3.13% in December, sustaining a substantial 11.60% cumulative increase for the six-month period.

Beverages recorded notable growth of 15.13% in December, while tobacco staged a remarkable turnaround with 44.64% monthly growth and 8.65% cumulative expansion.

Growth of Major Manufacturing Items

Several sectors faced headwinds during the month. Iron and steel continued its decline, falling 7.82% in December and 4.47% cumulatively.

Petroleum products slipped 4.66% on a monthly basis, though the sector retained a strong 13.49% cumulative gain.

Fertilizers contracted 9.66% in December and edged into negative cumulative territory at -1.29%. Sugar recorded a 9.41% monthly decline with an 8.10% cumulative contraction.

Pharmaceuticals extended their drag on the sector with a 5.35% cumulative decline, while machinery and equipment contracted sharply by 31.34% in December.

Sectoral Contributions

The main contributors toward the overall 4.82% cumulative growth were automobiles (1.57 percentage points), garments (1.25), petroleum products (0.98), non-metallic mineral products including cement (0.65), textiles (0.26), other transport equipment (0.24), and beverages (0.23).

Conversely, pharmaceuticals (-0.33), iron and steel products (-0.20), chemicals (-0.16), and paper and board (-0.08) weighed on overall growth.

The sustained growth momentum in Pakistan's manufacturing sector reflects improving economic conditions and strengthening domestic demand, particularly in the automobile and construction-related industries.

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