Pakistan Manufacturing PMI hits 51.8 in August, highest since war onset

September 01, 2026 (MLN): Pakistan’s manufacturing sector maintained its expansion in August, with the HBL Pakistan Manufacturing PMI rising marginally to 51.8 from 51.7 in July, marking its highest reading since the onset of the war.

The latest reading pointed to a continued but subdued improvement in manufacturing conditions, with firms benefiting from stronger domestic demand and sustained export activity.

New orders recorded their fastest expansion in five months, supported by improvements in product quality and competitive pricing. Export orders also increased for the fourth consecutive month, indicating continued resilience in overseas demand.

The improvement in orders helped sustain factory output, which expanded at a pace broadly unchanged from July. However, manufacturers remained measured in increasing production due to persistent inflationary pressures.

Purchasing activity increased for the third straight month, while manufacturers continued to accumulate inventories in anticipation of stronger demand in the coming months.

Employment remained broadly stable during August, as selective recruitment to manage higher order volumes was offset by continued efforts to control operating costs.

Supply-chain performance also improved, with delivery delays easing to their lowest level since November 2025.

Business sentiment strengthened further, with confidence in output over the next 12 months reaching one of the highest levels recorded during 2026.

Humaira Qamar, Head of Equities & Research at HBL, said optimism was supported by expectations of sustained sales growth and easing price pressures.

She noted that inflation is expected to moderate during the second half of FY27, although the pace of disinflation is likely to be slower and less pronounced than previously expected.

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