Pakistan LSMI contracts 5% MoM in August

October 16, 2026 (MLN): Pakistan’s Large Scale Manufacturing Industries (LSMI) output fell 4.96% month-on-month (MoM) in August 2026, with the Quantum Index of Manufacturing (QIM) at 113.19, down from 119.10 in July.

On a year-on-year (YoY) basis, output rose 0.67%, against 112.45 in August 2025, according to provisional data released by the Pakistan Bureau of Statistics (PBS) with base year 2015-16.

For July-August 2026-27, the first two months of fiscal year 2026-27, output grew 1.85% YoY, with the QIM at 116.14 against 114.03 in the same period last year.

Garments, petroleum products and automobiles led the performance, while food, chemicals and pharmaceuticals weighed on output.

Growth of Major Manufacturing Items

On a cumulative basis, the automobile sector surged 32.45% YoY, while garments rose 16.69% and petroleum products gained 15.48%.

Cement edged up 1.26% and cotton yarn grew 2.09%, while cotton cloth slipped marginally by 0.03%. Fertilizers fell 7.55%, and iron and steel continued its downward trend with a decline of 11.48%.

Among other sectors, other transport equipment grew 37.04% during the two months, tobacco rose 22.35% and furniture increased 31.08%.

Fabricated metal gained 10.31%, computer, electronics and optical products rose 5.15%, electrical equipment grew 4.99% and rubber products edged up 2.50%. Wood products jumped 253.26%, albeit on a very small weight of 0.18%.

On the decline side, food output fell 8.86%, beverages dropped 7.21% and textile slipped 2.98% YoY. Pharmaceuticals fell 14.57%, while chemicals declined 10.78%, with chemical products down 16.83% and fertilizers down 7.55% within that group.

Paper and board fell 5.72%, machinery and equipment dropped 4.27% and leather products slipped 0.88%. Other manufacturing (football) posted the sharpest fall at 39.57%.

August 2026 Performance

In August alone, petroleum products rose 31.85% YoY, while automobiles gained 11.66% and garments grew 10.85%. Furniture rose 73.47%, other transport equipment grew 26.95% and tobacco gained 10.11%. Cotton yarn grew 1.46%, while cotton cloth was nearly flat at 0.04%.

In contrast, food output fell 10.49%, beverages dropped 7.79% and textile declined 2.80%. Chemicals fell 12.93%, pharmaceuticals dropped 8.86%, iron and steel declined 11.56%, fertilizers slipped 9.00% and cement fell 3.52%. Other manufacturing (football) declined 37.97%.

Sectoral Contributions

The main contributors toward the overall 1.85% YoY growth during July-August were wearing apparel (2.85 percentage points), automobiles (1.20), petroleum products (1.17), furniture (0.43), tobacco (0.37), other transport equipment (0.27), electrical equipment (0.13) and cement (0.07).

Conversely, food (-1.20), chemicals (-0.89), pharmaceuticals (-0.86), textile (-0.52), iron and steel products (-0.48), beverages (-0.37) and machinery and equipment (-0.01) weighed on overall growth.

For August alone, petroleum products (2.26 percentage points) and wearing apparel (1.79) were the largest contributors, while food (-1.45) and chemicals (-1.09) were the largest drags.

The mixed sectoral performance reflects continued strength in garments and automobiles even as food, chemicals, pharmaceuticals and iron and steel remained under pressure in the first two months of the fiscal year.

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