Pakistan’s Large Scale Manufacturing (LSM) Index recorded a 0.4 percent year-on-year (YoY) increase in December 2025, while posting a strong 9.3 percent month-on-month (MoM) growth, reflecting a rebound in industrial activity.
During the first half of FY26 (1HFY26), the LSM index grew by 5 percent YoY, indicating improving momentum in the manufacturing sector.
The growth in December was driven primarily by a 31 percent YoY surge in automobile production, alongside 9 percent growth in wearing apparel, 3 percent growth in cement, 3 percent growth in non-metallic minerals, and a 2 percent increase in textiles.
However, several sectors recorded declines during the month. Fertilizer output fell 10 percent YoY, while pharmaceuticals and food production declined by 6 percent each. Output in petroleum and coke was also down 5 percent YoY in December 2025.
In Topline’s latest GDP growth assessment released on December 31, 2025, the report revised the LSM growth target for FY26 upward to 4.0 percent, from an earlier estimate of 2.5 percent, reflecting improved industrial performance.
