Large-Scale Manufacturing Registers Impressive 9% Growth In July

Islamabad: Pakistan’s large-scale manufacturing (LSM) sector experienced a significant boost in July 2025, registering a year-on-year growth of 9%, marking the fourth consecutive month of expansion. This positive trend follows five months of decline, signaling a potential resurgence in industrial output.

The substantial improvement spans several key industries. The automobile sector led the surge with a remarkable 57.8% growth, attributed to a favorable comparison with lower figures from the previous year and rising consumer demand. The apparel sector also witnessed a considerable increase of 24.8%, followed by cement at 18.8% and non-metallic minerals at 16.5%.

Several factors contribute to this positive trajectory. Declining inflation has played a crucial role by reducing input expenses for manufacturers, bolstering consumer purchasing power, and fostering stable production environments. Recent monetary easing policies have further brightened the prospects for the LSM sector. Although recent floods pose a potential challenge, their effect is anticipated to be minimal, with overall economic activity projected to maintain its upward momentum.