By Ali Imran
ISLAMABAD: The manufacturing sector recorded a strong growth of 6.6 percent in fiscal year 2026, up from 2.0 percent in the previous year, according to the Pakistan Economic Survey 2025-26 launched by Minister for Finance and Revenue, Senator Muhammad Aurangzeb here Thursday.
The improvement was primarily driven by a rebound in LSM, which grew by 6.1 percent with Small-Scale Manufacturing at 8.5 percent, and slaughtering at 6.2 percent Based on QIM, LSM grew by 6.5 percent during July-March FY 2026 against a contraction of 1.9 percent same period last year.
On a YoY basis, LSM posted a growth of 11.1 percent in March 2026, against the contraction of 2.4 percent in March 2025.
According to the survey, the revival was supported by favourable macro-economic conditions, stable exchange rate, contained inflationary pressures, improved input situation and relatively easing monetary policy.
Out of 22 industrial groups, 16 recorded a positive growth during July-March of FY2026, including Food, Textiles, Wearing Apparel, Coke & Petroleum Products, Non Metallic Mineral Products, Automobiles, Beverages and Electrical Equipment.
The Mining and Quarrying sector marginally grew by 0.4 percent in FY 2026, after four consecutive years of contraction. Significant growth was recorded in the extraction of magnesite (164.8 percent), rock salt (109.9 percent), gypsum (67.0 percent), iron ore (41.5 percent), ocher (31.7 percent), limestone (25.1 percent) and coal (6.5 percent) during JulyMarch FY 2026.
Meanwhile, production of sulphur declined by 68.0 percent, followed by chromite (51.3 percent), soap stone (24.7 percent), barytes (20.7 percent), natural gas (3.7 percent) and crude oil (0.6 percent).
