Pakistan’s factory output rebounds as autos, food drive 5.8 percent manufacturing surge

Pakistan’s factory output rebounds as autos, food drive 5.8 percent manufacturing surge

By Staff Reporter

ISLAMABAD: Pakistan’s large-scale manufacturing sector expanded 5.77% in the 11 months through May, its strongest stretch of growth in years, as a rebound in car production and food output offset persistent weakness in textiles, pharmaceuticals and steel.

The Quantum Index of Manufacturing climbed to 121.65 in the July-to-May period from 115.02 a year earlier, the Pakistan Bureau of Statistics said on Wednesday. The advance points to a broadening recovery in industrial activity after a prolonged slump, even as output slipped in May from a year earlier.

Automobiles were the single biggest driver, contributing 1.53 percentage points to the overall gain after production jumped 58.82% over the 11 months. Food processing added 1.36 points, garments 1.20 points and petroleum products 0.78 points. Cement, electrical equipment, furniture, beverages, tobacco and other transport equipment also added to growth.

The gains were not universal. Pharmaceutical output fell 8.07% over the same period, chemicals declined 2.64%, iron and steel products dropped 7.49% and fertilizer production slipped 2.25%. Textile production — the largest single category in the manufacturing index by weight — was essentially unchanged, down 0.09%, underscoring the sector’s struggle to gain traction even as other parts of the economy improved.

Car and truck manufacturing led the automobile sector’s surge, with jeep and car output up 60.60% and truck production climbing 76.88%. Bus production rose 23.66%. Light commercial vehicles were the exception, falling 11.27% over the 11 months.

Food output rose 7.75% for the year, driven by a 31.54% jump in sugar, bakery and chocolate production. Wheat and rice milling grew a more modest 0.76%. Cooking oil and vegetable ghee production fell, down 1.97% and 4.90% respectively, while blended tea output dropped 8.95%.

Petroleum and coke products rose 10.56% over the 11 months, with gains spread across most refined products. High-speed diesel output climbed 17.01%, petrol rose 13.04% and liquefied petroleum gas increased 14.56%. Furnace oil slipped 0.76% and kerosene fell 4.12%.

Within textiles, cotton yarn output rose 1.26% and cotton cloth increased 0.17%, together accounting for more than 80% of the sector. Garment exports, by contrast, jumped 7.31% for the 11-month period, reflecting stronger demand for finished apparel even as the broader textile category stayed flat. Statisticians pointed to softer export unit values — a sign of weaker overseas pricing power — as the main drag on textile production.

Output slipped 0.98% in May from a year earlier, though it rose 1.21% from April, the bureau said. The Quantum Index stood at 116.10 for the month, down from 117.25 in May 2025.

The monthly figures showed sharper swings than the 11-month trend. Automobile production climbed 20.81% in May from a year earlier. Sugar output rose 23.25% and garments increased 7.05%. Petroleum products gained 15.75%. Cotton cloth edged up 0.04%, while cotton yarn fell 1.28% for the month even as its 11-month figure remained positive.

Cement told a similarly uneven story: production fell 9.36% in May from a year earlier, yet was still up 7.16% for the 11-month period, pointing to a sharp deceleration in the most recent month rather than a change in the year’s overall trend. Iron and steel output dropped 12.57% in May and is down 7.49% for the 11 months. Fertilizer production fell 4.77% in May and 2.25% over the full period.

Rubber products rose 14.20% over the 11 months, non-metallic mineral products climbed 6.31% and electrical equipment output increased 13.50%.

The bureau’s breakdown of contributions to the 5.77% headline growth rate showed food adding 1.36 percentage points, automobiles 1.53 points, garments 1.20 points and petroleum products 0.78 points. Cement contributed 0.40 points and electrical equipment 0.35 points. Pharmaceuticals subtracted 0.49 points, iron and steel products 0.32 points, chemicals 0.21 points and textiles a marginal 0.02 points.

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