Auto Sector Delivers Biggest Boost to Manufacturing in Q1 FY26
Pakistan’s Large Scale Manufacturing (LSM) Index rose to 114.69 in September 2025, showing a 2.69% year-on-year and 2.05% month-on-month increase, according to the Pakistan Bureau of Statistics (PBU).
During 1QFY26, the LSM Index averaged 114.23, up 4.08% from the same period last year, indicating continued improvement in industrial activity.
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What is LSM?
The Large Scale Manufacturing (LSM) Index tracks output from Pakistan’s major industries. It is a key indicator of industrial activity, with a higher index reflecting stronger factory output and economic momentum.
The automotive sector showed the strongest growth among industries, with production rising 75.25% in September and 84.58% in the first quarter of FY26, compared to the same periods last year, according to PBS data.
Even though the sector has only a 3.10% weight in the LSM index, it still gave the biggest boost to overall industrial growth, adding 1.85 percentage points to September’s LSM increase and 1.84 points to the quarter’s overall rise, making it the single most significant positive driver of the quarter’s overall 4.08% LSM expansion.
