Pakistan’s Large Scale Manufacturing Index (LSMI) recorded robust growth in October 2025, rising 3.8% month-on-month and 8.3% year-on-year, according to data from the Pakistan Bureau of Statistics.
For the first four months of FY26 (4MFY26), LSMI expanded by 5.0% YoY, signaling a positive trajectory amid falling inflation and lower interest rates.
Key Sector Performers and Decliners
The automobile sector led with a 65% YoY increase, driven by stable tariffs, lower interest rates boosting auto finance, and recovering demand. Coke & Petroleum Products surged 49% YoY, while Other Manufacturing (including footballs) rose 36% YoY. Cement production climbed 16% MoM and 13% YoY, reflecting construction incentives. However, Pharmaceuticals fell 12% YoY, Chemicals 9% YoY, and Textiles dipped 3% MoM despite a modest 1% YoY gain.
Positive Outlook Amid Challenges
Analysts expect LSMI to continue upward, supported by aggregate demand growth, construction boosts from post-flood rehabilitation, mortgage credits, and housing subsidies. However, sluggish broad-based demand due to higher taxation and recent flood damages may temper gains. Sectors like Cement, Steel, and Chemicals are poised to benefit in coming quarters.