LSM surges 9pc YoY in July 2025

Pakistan’s economy received a boost as large-scale manufacturing (LSM) industries registered strong growth in July 2025, reflecting both a low base effect and improved domestic demand.

According to official data, industrial output rose 9 percent year-on-year, while month-on-month growth stood at 2.6 per cent.

The automobile, furniture, and apparel sectors spearheaded the recovery, significantly lifting overall production.

Automobiles posted an impressive 57.8 per cent increase, garments 24.8 per cent, cement 18.8 per cent, and petroleum products 13.2 percent.

Furniture production surged by 86.8 per cent, while output of other transport equipment grew by 45.8 percent. Food and paper & board also contributed positively, rising 6.6 per cent and 15.0 per cent, respectively.

However, certain industries weighed on growth. Beverages declined by 6.2 percent, chemicals by 2.6 percent, iron and steel by 3.7 percent, and fertilisers by 1.6 per cent. Machinery and equipment reported a steep fall of 22.8 per cent.

The Pakistan Bureau of Statistics (PBS) noted that the major contributors to overall LSM growth in July 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).

In contrast, beverages and chemicals dragged the index by 0.39 and 0.24 percentage points, respectively.

Economic analysts said the latest figures point towards a gradual recovery, suggesting renewed momentum in Pakistan’s industrial sector despite pockets of weakness.