Islamabad: Pakistan’s HBL Manufacturing PMI dropped to 49.9 in April 2026 from 52.9 in March, signaling the first contraction in six months and indicating emerging stagflationary pressures. The decline reflects weakening output and new orders due to rising raw material costs linked to Middle East tensions. Export demand also softened, while employment levels and work backlogs decreased across the manufacturing sector. Inventory levels saw a sharp contraction as firms relied on existing stock to meet demand. This development under the Governance & Policy Cluster highlights growing economic strain on industrial activity. For Lahore and Punjab, the slowdown may impact manufacturing output, jobs, and business confidence. Will the industrial sector recover in coming months?
