Pakistan’s cement industry is poised for robust growth in the fiscal year 2025–26, driven by increased demand and favorable economic conditions.
Strong Start to FY26
In July 2025, cement dispatches surged to 4 million tons, marking a 30% year-on-year increase. This growth was fueled by an 18% rise in local sales and an 84% jump in exports, primarily due to a low base effect from July 2024. Month-on-month, dispatches rose by 16%, with local and export volumes increasing by 15% and 17%, respectively, attributed to more working days in July following the Eid holidays .
Positive Outlook for FY26
Analysts maintain an optimistic view of the cement sector, projecting a 7–8% revival in volume growth during the second half of FY26. This anticipated rebound is supported by increased government spending on infrastructure projects, easing interest rates, and a recovery in construction activities .
Export Growth and Capacity Utilization
The export segment has shown significant improvement, with July 2025 exports increasing by 87% year-on-year. Notably, companies like Attock Cement, DG Khan Cement, and Fauji Cement reported substantial export growths of 260%, 211%, and 188%, respectively . Industry-wide capacity utilization improved to 57% in July, up from 51% in June, indicating efficient production and distribution .
Factors Driving Growth
Several factors contribute to the sector’s positive trajectory:
- Government Initiatives: The “Uraan Pakistan” economic plan aims to boost infrastructure development, providing a steady demand for cement .
- Lower Input Costs: Decreasing coal prices have reduced production costs, enhancing profit margins for cement manufacturers.
- Monetary Policy: Easing interest rates have made financing more accessible, stimulating construction activities.
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