Big industry output grows 10.5% YoY in Jan 2026

March 17, 2026 (MLN): Pakistan's large-scale manufacturing sector continued its upward trajectory in January 2026, with the Quantum Index of Manufacturing (QIM) climbing to 144, which reflects broad-based industrial expansion driven by standout performances in automobiles, garments, food, and cement.

According to provisional data with base year 2015-16, Large Scale Manufacturing Industries (LSMI) output grew 10.54% year-on-year (YoY) in January 2026, while posting a strong 12.08% month-on-month (MoM) increase compared to December 2025.

On a cumulative basis, the sector recorded 5.75% growth during July–January FY26, with the QIM averaging 121.46, up from 114.85 in the same period last year.

Sector Highlights

The automobile sector sustained its dominant growth trajectory with a remarkable 67.31% surge in January and a cumulative 67.38% expansion during July–January FY26, cementing its position as the single largest driver of industrial output.

Garments maintained robust momentum with 10.82% monthly growth and a 8.02% cumulative expansion, reflecting continued strength in export-oriented textile manufacturing.

The food sector staged a strong recovery, posting 12.07% monthly growth and a 3.28% cumulative increase, reversing earlier softness in the segment.

Cement production grew 10.83% in January, sustaining a substantial 11.49% cumulative increase for the seven-month period, underpinned by ongoing construction activity.

Electrical equipment emerged as a notable outperformer with 17.02% monthly growth and a 9.97% cumulative gain.

Furniture recorded a dramatic turnaround with 186.27% monthly growth, while other manufacturing  including footballs  surged 59.11% in the month.

Beverages continued their steady expansion with 8.53% monthly growth and a 5.54% cumulative rise, while tobacco posted 24.65% monthly growth and a 10.71% cumulative increase.

Growth of Major Manufacturing Items

Several sectors continued to face pressure during the month. Iron and steel extended its decline, falling 8.87% in January and contracting 5.10% on a cumulative basis.

Machinery and equipment remained in sharp contraction, declining 19.41% in January and posting an 18.83% cumulative fall the steepest drag among tracked segments.

Pharmaceuticals recorded a 1.63% monthly decline, extending their cumulative contraction to 4.82%.

Fertilizers slipped 1.09% in January, with cumulative output down 1.26%. Chemicals edged 1.35% lower on a cumulative basis despite a modest monthly recovery of 2.51%.

Leather products and wood products also registered marginal declines both monthly and cumulatively.

Sectoral Contributions

The main contributors toward the overall 5.75% cumulative growth were automobiles (1.61 percentage points), garments (1.34), petroleum products (0.85), food (0.58), non-metallic mineral products including cement (0.63 pp), textiles (0.28), other transport equipment (0.24), beverages (0.23), and electrical equipment (0.25).

Conversely, pharmaceuticals (-0.29), iron and steel products (-0.22), chemicals (-0.11), and paper and board (-0.04) weighed on overall growth.

The accelerating growth momentum in January 2026  marked by double-digit YoY and MoM gains  signals strengthening domestic demand and improving industrial capacity utilisation, particularly in the automobile, construction, and consumer goods segments.

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