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Pakistan Manufacturing Sector Shows Broad-Based Recovery

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17 Jan 2026 - 15:55

The Kabul Tribune (KT) — Pakistan’s large-scale manufacturing sector posted strong growth in November, signaling a broad-based industrial recovery supported by rising consumer demand, renewed investment activity and improving supply-chain conditions.

Large-Scale Manufacturing (LSM) output rose 10.4% in November 2025 from a year earlier, with positive month-to-month momentum, according to official data. Growth was driven by multiple sectors, including automobiles, cement, coke and petroleum products, food and beverages, garments, paper and board, rubber, nonmetallic minerals, and electrical and electronic equipment.

The gains extended beyond a single month. LSM production increased 6.0% year-on-year during the first five months of fiscal year 2026, from July through November, with more than 10 industries contributing to the expansion.

Economists say the data point to a recovery that is broad rather than concentrated, spanning both consumption- and investment-led sectors. Improved performance in automobiles, food, garments and construction-related industries reflects strengthening consumer demand, while higher cement output and increased industrial inputs suggest a pickup in investment activity.

Growth in petroleum-linked industries also indicates greater stability in energy supply chains after a period of disruption.

Analysts attribute the improvement in manufacturing to policy stability and tighter macroeconomic management, which they say are beginning to translate into sustained industrial growth.

The latest figures suggest Pakistan’s manufacturing sector is moving beyond stabilization toward a more durable expansion, boosting confidence in the country’s economic outlook.