LSMI output rises 6.45% YoY during Feb’26

April 16, 2026 (MLN): Pakistan's large-scale manufacturing sector maintained its upward trajectory in February 2026, with the Quantum Index of Manufacturing (QIM) reaching 131.50, showing continued industrial momentum driven by strong performances in automobiles, sugar, and petroleum products.

According to provisional data with base year 2015-16, Large Scale Manufacturing Industries (LSMI) output grew 6.45% year-on-year (YoY) in February 2026, while posting an 8.97% month-on-month (MoM) decline compared to January 2026 a seasonal correction following January's elevated base.

On a cumulative basis, the sector recorded 5.89% growth during July–February FY26, with the QIM averaging 122.77, up from 115.94 in the same period last year.

The automobile sector remained the primary driver of industrial growth, recording a strong 28.74% increase in February, while cumulative output surged by an impressive 61.66% during July–February FY26.

The sugar industry staged a notable recovery, posting a 29.34% month-on-month increase, alongside a solid 13.62% cumulative expansion over the eight-month period.

Petroleum products maintained a healthy performance, rising 14.03% in February and sustaining a strong cumulative growth of 11.98% during July–February FY26.

Cement output also showed steady progress, increasing by 8.27% in February and maintaining a substantial 11.11% cumulative gain over the same period.

Fertilizer production recorded a notable monthly rebound of 9.60%; however, cumulative output remained slightly negative, edging down by 0.15% during the period under review.

Meanwhile, the garments sector maintained stable momentum, posting a modest 0.85% increase in February and achieving a 7.16% cumulative expansion over the eight months.

Growth of Major Manufacturing Items

 Several sectors continued to face headwinds during the month. Iron and steel extended its decline, falling 9.94% in February and 5.70% cumulatively.

Pharmaceuticals remained a drag on overall output, contracting 5.79% on a monthly basis and recording a 4.94% cumulative decline.

Chemical products slipped 9.38% in February with a 3.04% cumulative contraction, while machinery and equipment continued its sharp descent, declining 16.51% on a cumulative basis.

Sectoral Contributions

The main contributors towards the overall cumulative growth of 5.89% were automobiles (1.50 percentage points), garments (1.18), food (0.98), petroleum products (0.85), non-metallic mineral products including cement (0.61), textiles (0.27), electrical equipment (0.25), beverages (0.25), other transport equipment (0.23), and furniture (0.20).

Conversely, pharmaceuticals (-0.30), iron and steel products (-0.24), chemicals (-0.09), and machinery and equipment (-0.06) weighed on overall growth.

The sustained growth momentum in Pakistan's manufacturing sector shows continued recovery across key industrial segments.

The strong performance of automobiles, petroleum products, and construction-related industries points to improving domestic demand and gradually stabilising economic conditions heading into the second half of FY26.

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