KARACHI: Pakistan’s industrial sector showed signs of recovery in March 2026, as large-scale manufacturing (LSM) recorded strong annual growth. However, a monthly decline highlights ongoing volatility in the sector.
According to Beyond Time News, LSM output increased by 11.09% year-on-year (YoY) in March. This growth reflects improved activity in key industries, though short-term trends remain uneven.
Monthly Drop Signals Volatility
Despite the yearly increase, LSM output fell by 5.19% compared to February. This drop shows that production levels are still unstable.
For the period from July to March in FY2025-26, the sector grew by 6.48%. The Quantum Index of Manufacturing (QIM) reached 123.03, indicating gradual improvement.
Auto Sector Leads Growth
The automobile industry emerged as the top performer. It recorded a sharp 61% increase YoY in March. Strong consumer demand and smoother production supported this growth.
Other sectors also performed well. Garments and petroleum products contributed positively to overall output.
Sugar Production Jumps Significantly
The sugar industry showed impressive growth during the fiscal year. Output rose by 31% in the first nine months, reaching 7.56 million tonnes.
This increase reflects better crop yields, favourable weather, and improved supply chains. It also marks a strong recovery from last year’s lower production levels.
Mixed Performance in Textile Sector
The textile sector delivered mixed results. Cotton cloth production increased slightly, while cotton yarn declined by 1.34%.
However, value-added segments like garments continued to support overall growth.
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Key Industries Still Under Pressure
Some major industries struggled during this period. The cement sector contracted by 6.64%, mainly due to weak construction demand.
Iron and steel production dropped by 11.46%, reflecting slow progress in large projects. The fertiliser sector also declined by 7.55%, likely due to seasonal demand changes.
Uneven Recovery Across Sectors
Growth in LSM remains uneven. Sectors like food, textiles, automobiles, and chemicals supported expansion. In contrast, heavy industries continued to face challenges.
Outlook for Pakistan’s Manufacturing Sector
Pakistan’s manufacturing sector is recovering धीरे but remains fragile. Sustained growth will depend on stable economic conditions, reliable energy supply, and stronger demand.
Without these improvements, the sector may continue to face ups and downs.
