Pakistan’s industrial sector showed strong signs of recovery as LSM surges in July 2025, driven by key manufacturing industries. Official data revealed that large-scale manufacturing grew 9 percent year-on-year, with month-on-month growth at 2.6 percent.
The automobile, furniture, and apparel sectors led the upswing, significantly supporting overall industrial output. Automobiles recorded a remarkable 57.8 percent increase, garments rose 24.8 percent, cement production increased 18.8 percent, and petroleum products grew by 13.2 percent. Furniture production jumped 86.8 percent, while other transport equipment rose 45.8 percent. Food and paper & board sectors also contributed positively, increasing by 6.6 percent and 15 percent, respectively.
Despite the overall growth, some industries experienced declines. Beverages fell 6.2 percent, chemicals dropped 2.6 percent, iron and steel declined 3.7 percent, and fertilisers fell 1.6 percent. Machinery and equipment production suffered the largest drop, falling 22.8 percent.
According to the Pakistan Bureau of Statistics (PBS), the main contributors to growth were wearing apparel (+3.80 percentage points), automobiles (+1.33 ppts), petroleum products (+1.01 ppts), non-metallic mineral products (+0.96 ppts), and furniture (+0.91 ppts). Conversely, beverages and chemicals subtracted from growth by 0.39 and 0.24 percentage points, respectively.
Economic analysts highlighted that LSM surges indicate a gradual recovery in Pakistan’s industrial sector. They noted that improved domestic demand, along with a low base effect, has supported strong performance in several manufacturing areas. However, certain industries remain under pressure, reflecting uneven growth across sectors.
Experts expect that sustained demand and investment could maintain momentum, helping the large-scale manufacturing sector continue its upward trend in the coming months.
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