KARACHI: Mian Zahid Hussain, a prominent figure in Pakistan's business circles, has acknowledged the positive uptrend in Pakistan's large-scale manufacturing (LSM) sector, as per the latest data from the Pakistan Bureau of Statistics. The Quantum Index of Manufacturing rose to 119.13 in July 2026, marking a 3.03% year-on-year increase and a 9.51% month-on-month rise. However, despite these gains, Hussain emphasized the uneven nature of the recovery.
According to the Pakistan Businessmen and Intellectuals Forum, while sectors such as automobiles and transport equipment saw substantial growth — 57.01% and 40.22% respectively — critical sectors like textiles, pharmaceuticals, and steel faced notable declines. Textile production decreased by 3.09%, pharmaceuticals by 20.79%, and iron and steel by 11.40%. The decline in pharmaceuticals notably reduced the overall LSM growth by 1.24 percentage points.
Hussain highlighted the pressing need for sector-specific policy interventions, particularly for textiles, which hold significant weight in Pakistan's export economy. Despite strong garment growth and a slight increase in cotton yarn production, the misuse of the Export Facilitation Scheme has adversely affected domestic cotton cloth production. This has contributed to a negative trend in overall textile output.
In pharmaceuticals, significant drops were recorded in the production of key items, with capsules and injections falling by 61.91% and 45.45%, respectively. The steel sector also experienced declines, evidenced by a 32% reduction in the production of steel billets and ingots. Hussain advocated for a targeted promotional strategy, suggesting the government provide sector-specific support, such as reliable energy supplies for textile exporters and consistent availability of raw materials for the pharmaceutical industry.
Despite the month-on-month improvement in July, Hussain cautioned against considering it as a sign of sustainable recovery. He urged the government to identify bottlenecks through detailed sector-specific data and implement corrective measures to foster comprehensive industrial growth.