ISLAMABAD — Pakistan's large-scale industrial sector began the new fiscal year with renewed growth, although the recovery remained uneven across different manufacturing segments.

The Large-Scale Manufacturing (LSM) sector recorded 3.03% year-on-year growth in July 2026, according to Pakistan Bureau of Statistics data. On a month-on-month basis, production increased by 9.5%.

The July performance followed a 3.48% contraction recorded in June. The Quantum Index of Manufacturing rose to 119.13, compared with 115.62 in July of the previous year.

Several industries contributed to the improvement, including automobiles, garments, petroleum products, cement, electrical equipment and furniture.

The automobile sector was particularly strong, with production increasing substantially during the opening month of FY2027. Garment production also contributed to the overall manufacturing performance.

However, the recovery was not broad-based. Textile production declined 3.09% year-on-year in July, while pharmaceuticals, chemicals and iron and steel also recorded declines. Food production was another drag on overall industrial growth.

The mixed performance indicates that Pakistan's industrial recovery is developing at different speeds across sectors. Stronger automobile and selected manufacturing output contrasts with weakness in some traditional industrial categories.

For businesses, sustained industrial growth will depend on factors including energy availability, production costs, domestic demand, export conditions and access to financing.