HBL Pakistan’s Manufacturing PMI hits 53.6 in Feb

March 02, 2026 (MLN): Pakistan’s manufacturing activity strengthened in February, as reflected by a notable rise in the HBL Pakistan Manufacturing PMI to 53.6 from 51.8 in the previous month which marks its strongest performance in a year.

The improvement was largely fueled by a sharp increase in new orders, which expanded at their fastest pace in  11 months.

Companies attributed the rise in sales to better product standards and continued efforts to offer competitive pricing.

The rebound was not limited to the local market.

Export demand also improved, recording its most significant growth in close to a year, supported by healthier global conditions.

As a result of stronger order volumes, production picked up at its quickest pace since November.

Businesses also took advantage of the improved environment to replenish stock levels, with inventories of finished goods increasing for the third time in four months.

Rising demand encouraged firms to hire more workers, leading to the strongest employment growth since the survey began in May 2024, as companies responded to heavier workloads and capacity requirements.

However, cost pressures intensified during the month. Input prices climbed at their fastest rate in over a year, mainly due to higher raw material expenses.

To protect profit margins and offset both cost and tax increases, manufacturers raised their selling prices at the sharpest pace in 18 months.

Commenting on the developments, Kumail Chevelwalla, Team Lead Equities & Research at HBL Bank, highlighted that rising inflation expectations are becoming more visible, strengthening the case for the Monetary Policy Committee to keep interest rates unchanged at its upcoming March meeting.

Although firms remain generally optimistic about output growth over the next year, overall confidence has slipped to its lowest level on record, as businesses continue to point to tariff-related challenges and a heavy tax burden.

While uncertainty surrounding U.S. trade policy remains a concern, reports of ongoing engagement with the IMF on potential tax relief in the upcoming budget provide a degree of cautious optimism.

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