Pakistan’s cement industry started FY2026-27 on a positive note as cement sales in Pakistan increased 6.02% year-on-year in July 2026, driven by robust domestic demand despite a sharp decline in exports.
The latest figures suggest that local construction activity remains resilient, although weakening overseas shipments continue to pose challenges for manufacturers.
The All Pakistan Cement Manufacturers Association (APCMA) reported that total cement dispatches reached 4.476 million tons in July 2026, compared with 4.222 million tons during the same month last year.
Key Details
- Total cement dispatches: 4.476 million tons (up 6.02%)
- Domestic sales: 3.771 million tons (up 17.28%)
- Exports: 705,341 tons (down 29.95%)
- North region dispatches: 3.092 million tons (up 9.46%)
- South region dispatches: 1.383 million tons (down 0.95%)
Domestic demand remained the primary growth driver during the month.
Local cement sales climbed to 3.771 million tons, an increase of 17.28% from 3.215 million tons recorded in July 2025. In contrast, exports fell sharply to 705,341 tons, down from 1.007 million tons a year earlier.
North Leads Domestic Growth
Manufacturers based in northern Pakistan recorded strong performance, dispatching 3.092 million tons, up 9.46% from the previous year.
Domestic sales in the region increased by 19.25%, reflecting continued demand from infrastructure projects, housing developments, and private construction activity.
Meanwhile, mills in southern Pakistan dispatched 1.383 million tons, a marginal decline of 0.95%. However, domestic sales in the region still improved by 9.07%, reaching 678,147 tons.
Exports Continue to Weaken
Despite healthy local demand, exports remained under pressure across both regions.
North-based manufacturers reported zero export dispatches during July 2026, compared with 231,985 tons exported in the same month last year.
Exports from southern manufacturers also declined by 8.98% to 705,341 tons, highlighting weaker international demand and increasing competition in export markets.
Background
Pakistan’s cement industry has experienced fluctuating export performance over the past two years due to rising freight costs, softer regional demand, and economic uncertainty in key overseas markets. At the same time, domestic consumption has remained relatively stable, supported by government development projects and private-sector construction.
Industry analysts note that cement dispatches are often viewed as an important indicator of overall economic and construction activity.
What This Means
The latest APCMA data indicates that Pakistan’s construction sector continues to provide a cushion for cement manufacturers despite declining exports.
However, industry stakeholders believe further growth will depend on lower taxation, improved infrastructure spending, and stronger export competitiveness.
An APCMA spokesperson said:
“Domestic cement consumption could increase further if the government reduces duties and taxes on cement, as it is an essential commodity rather than a luxury item.”
The association also urged the government to support the rehabilitation of flood- and rain-affected areas, saying reconstruction efforts could further boost cement demand in the coming months.
What’s Next?
The cement industry will closely monitor domestic construction activity during the remainder of FY2026-27 while looking for improvements in export markets.
Government policies on taxation, infrastructure investment, and post-monsoon reconstruction are expected to play a key role in determining future demand.
FAQ
Why did Pakistan’s cement sales increase in July 2026?
Higher domestic construction activity lifted local cement demand, resulting in a 17.28% increase in domestic sales despite lower exports.
Why did cement exports decline?
Exports fell due to weaker international demand and challenging market conditions, with total overseas dispatches dropping nearly 30% year-on-year.
What could boost cement demand further?
According to APCMA, lower taxes on cement, increased infrastructure spending, and reconstruction work following monsoon rains could support stronger demand.
